Featured

I marveled how he lived. Perpetual discomfort in his own skin, especially when the topic turned to human hardships, death or separation from people he had embraced once or a thousand times. He was touched easier than most people.

His heart was meant to be touched.

There was an eternal itch he couldn’t scratch, a wound that never healed and occasionally those souls festered and formed into poetry, often set to music. But mostly, scribbles on wrinkled college-ruled. I possess a few of those scribbles.

He took in those he cared for. All the way in. No one who touched him was ever gone. They continued to tap him on the shoulder, sometimes a bit too much.

Death or disappearance didn’t matter.

Souls gone but never gone, faded to an image of a re-lived last goodbye or emerged as hard reverence.

A graceful testament to those he loved. Especially the tortured ones.

Mostly. The tortured or hurt ones. The frail who couldn’t go on and took matters into their own hands.

Like he was singing to God to let them in.

Pleading for their mercy.

Let. Them. In..

The Faron Young Memorial. The country legend. A suicide.

They slunk like shadows out of nowhere to follow him.

Around the edges dark of light.

At times, he was ahead of the demons. Then black days existed. He was captured.

Unfortunately, like ill-timed the public always seemed to be around for those moments.

He was heartbroken and haunted over deaths of youth. They were his losses. In a way, J.C. anxiously sought to absorb the pain because that’s what you did for people you love.

He never was able to release from the death of his brother Jack.

He shuffled the heels of his favorite house shoes.

Back and forth in the dirt like an anxious child with an agitated hitch in his step, or nervous tic. Forming nervous heel arcs in the dirt.

Solemn words delivered deep and straight and without compromise.

Cash was like that with promises.

Those he made to others were kept. Promises made to himself – not so much.

As we admired a big, slung-low orange sun disappear in slow motion beneath the glass-like water of Old Hickory Lake, the conversation shifted to Roy Orbison who lost two of his three children to a house fire.

The Cash and Orbison families were next door neighbors in 1967.

Perhaps it was the Tennessee high-octane that gave me the courage to pull the past into this moment, dig into the scars of heartbreaking tragedy.

The fire fascinated me. Fire always fascinates me.

JC’s overwhelming act of love fascinated me more. As I watched him ponder, perhaps relive that moment, I asked a question that popped into my head.

What do you think goes through your head 10 seconds before you die?

I don’t know why 10 seconds. It was a question that popped into my head because it was supposed to, I guess.

10 just rolled off my tongue. Little did I know at the time how important the thought of 10 seconds was going to be. And asking the question. Over the following decade I was to lose everybody I cherished.

He spoke in deepest baritone. Vibrations circle and settle in my ears.

In the middle of the night I can hear that voice resonating under my head. Shaking my pillow.

I listen.

I always listened…

John Gilpin was testing out his camera when he accidentally caught a 14-year-old stowaway’s fall.

The last seconds of a life are staccato sparkles which ignite eyes to free your eyes.

Tenured financial concepts which define the core of advice in the brokerage industry go relatively unchallenged. Investors, due to lack of experience about such matters, have a difficult time challenging the status quo or ask the right questions.

The easiest way to convince investors to “stick with an asset allocation or investment plan” is to use the past as a pacifier, regardless of current market cycle. In other words, if it’s broken there’s no need to adjust the guidance.

The industry just needs to isolate and showcase a cycle where the old confines worked, push that specific period of time into the present and extrapolate the positive, perpetually into the future.

Hey, it’s what the industry does best.

I believe nothing changes in practice on financial front lines, as the priority remains pushing products. Brokerage firm margins are embattled by the profit-draining effects of lower-for-longer interest rates.

I don’t blame the mouthpieces as much as I do the senior management and compliance departments that channel, reward or benefit from the behavior.

As a regional manager at Charles Schwab told me:

“It’s always about shareholders first.”

There are Holy Grail concepts that are rarely revisited except by academics and a select few in the private sector and for their work, I’m grateful.

From experience I’ve experienced how somewhere between academia and implementation in the field, updates or improvements to dogmatic strategies` get lost or ignored, especially when they conflict with the short-term focus on shareholder and analyst expectations.

The insidious or naïve (take your pick) roads most selected are designed to mollify fears and at the same time, leave investor wealth exposed unnecessarily to danger.

An egregious stretch of the truth emboldens the heavily-protected sanctuary of diversification.

It’s a word that makes investors feel good.

It rolls sweet off the tongue. It represents warmth of a blanket fresh out of the dryer, the scent of fresh-baked cinnamon rolls.

However, don’t be duped. Today, diversification as pitched by your broker, is a wolf dressed as Red Riding Hood. Many financial professionals have fooled themselves regarding its effectiveness. At least the way it’s defined, currently.

You must understand what diversification is and most crucial, what it isn’t. Certainly, it’s not the panacea it’s communicated to be.

The outdated definition of diversification requires a tune up. There’s no ‘free lunch,’ here, although I continue to hear and read this dangerous adage in the media.

The word gets thrown around like a remedy for everything which ails a portfolio. It’s the industry’s ‘catch all’ that can lull investors into complacency, inaction.

So, who buys into this free lunch theory, again?

After all, what is free on Wall Street? Investors who let their guard down, buy in to the myth of free lunches on Wall Street, ostensibly find their money on the menu.

Due to unprecedented central bank intervention, there exists extreme distortion in stock and bond prices. Interest rates ‘lower for longer’ and in several cases, negative, have created a frenzied reach for yield in dividend stocks. Global risk-averse investors have purchased bonds with a voracious appetite.

A way to effectively manage risk has morphed into two disparate perceptions. The investor’s definition of diversification and that of the industry has parted, leaving an asset allocation plan increasingly vulnerable.

Today, the practice of diversification is Pablum. Watered down. Reduced to a dangerous buzzword.

First, what is the staid, mainstream definition of diversification?

According to Investopedia – An internet reference guide on money and investments:

Diversification strives to smooth out unsystematic riskevents in a portfolio so the positive performance of some investments neutralizes the negative performance of others. Therefore, the benefits of diversification hold only if the securities in the portfolio are not perfectly correlated.

Diversification benefits can be gained by investing in foreign securities because they tend to be less closely correlated with domestic investments. For example, an economic downturn in the U.S. economy may not affect Japan’s economy in the same way; therefore, having Japanese investments gives an investor a small cushion of protection against losses due to an American economic downturn.

Now let’s break down the lunch and examine how free it is.

Unsystematic risk – This is the risk the industry seeks to help you manage. It’s the risks related to failure of a specific business or underperformance of an industry.

To wit:

This is a company- or industry-specific hazard that is inherent in each investment. Unsystematic risk, also known as “nonsystematic risk,” “specific risk,” “diversifiable risk” or “residual risk,” can be reduced through diversification.

So, by owning stocks in different companies and in different industries, as well as by owning other types of securities such as Treasuries and municipal securities, investors will be less affected by an event or decision that has a strong impact on one company, industry or investment type.

So, think of it this way: A ‘diversified’ portfolio represents a blend of investments – stocks, bonds for example, that are designed to generate returns with less overall business risk.

While this information is absolutely valid, the financial industry encourages you to think of diversification as risk management, which it isn’t.

Here’s what you need to remember:

Ketchup (consumer staples) and oil (consumer cyclicals) all run down-hill, in the same direction in corrections or bear markets.

Sure, ketchup may run behind, roll slower, but the direction is the one direction that destroys wealth – SOUTH.

Large, small, international stocks. Regardless of the risk within different industries, stocks move together (they connect in down markets).

Consider:

What are the odds of one or two companies in a balanced portfolio to go bust or face an industry-specific hazard at the same time?

What’s the greater risk to you? One company going out of business or underperforming or your entire stock portfolio suffers losses great enough to change your life, alter your financial plan.

You already know the answer.

Diversification is not risk management, it’s risk reduction.

When your broker preaches diversification as a risk management technique, what does he or she mean?

It’s not risk management the pros believe in, but risk dilution.

There’s a difference. The misunderstanding can be painful.

To you, as an investor, diversification is believed to be risk management where portfolio losses are controlled or minimized. Think of risk management as a technique to reduce portfolio losses through down or bear cycles and the establishment of price-sell or rebalancing targets to maintain portfolio allocations. Consider risk dilution as method to spread or combine different investments of various risk to minimize volatility.

Even the best financial professionals only consider half the equation.

Beware the lamb (risk management) in wolf’s clothing (risk dilution).

The goal of risk dilution is to “cover all bases.” It employs vehicles, usually mutual funds, to cover every asset class so business risk can be managed. The root of the process is to spread your dollars and risk widely across and within asset classes like stocks and bonds to reduce company-specific risk.

There’s a false sense of comfort in covering your bases. Diversification in its present form is not effective reduce the risk you care about as an individual investor – risk of loss.

Today, risk dilution has become a substitute for risk management, but it should be a compliment to it.

Risk dilution is a reduction of volatility or how a portfolio moves up or down in relation to the overall market.

Risk dilution works best during rising, or up markets as since most investments move together, especially stocks.Think about betting on every horse in a race.

In other words, a rising tide, raises all boats.

So, why is risk reduction but not risk management, the prevailing sentiment?

Sales Goals: Most financial pros are saddled with aggressive sales goals. Risk dilution is a set and forget strategy. Ongoing risk management is time consuming and takes time away from the selling process.

Diversification can be stronger than it is right now. Unfortunately, the financial industry as a whole, has watered it down and widened it so much, it’s become absolutely ineffective as a safeguard against losses. One reason is the sales targets that forces financial representatives to spend less time with client portfolios.

Compliance Departments: A targeted diversification strategy places accountability on the advisor and poses risk to the firm. A wider approach makes it easier to vector responsibility to broad market ‘random walks’ so if a global crisis occurs and most assets move down together, an advisor and the compliance department, can “blame” everything outside their control.

“Hey it’s not our fault, it’s the market!”

Convenient excuse, isn’t it?

Diversification requires a shake-up, a smarter approach.

The Clarity team decided to go back to the drawing board. Consider how investors perceive diversification, then create a thoughtful definition which incorporates part of the old along with important enhancements.

My revised definition of diversification:

A targeted selection of investments designed to manage risk within an allocation that’s behaviorally connected to who you are and the goals you seek to achieve. An allocation that fits the macro-economic environment driven by specific investment buy and sell disciplines.

That’s diversification for the new world, post-great recession.

Revised diversification strategies require actionable rules.

The following guardrails should help you identify and avoid the pitfalls that define diversification as it’s practiced in the field of financial services.

Random Thoughts:

Watch for over-diversification. Too much of a good thing can increase risk. That’s not your objective. Do not allow your financial advisor to spread your investment dollars too thin: All you’ll do is create an expensive index fund alternative.The more investments you own, the more a portfolio may mirror or move in unison with the underlying markets (you can do that on your own in a less expensive manner).

Control the number of securities you own or add. Proper diversification can be achieved with as little as 5 to as much as 15 separate investment to represent stocks and fixed income options. You must understand the reasons behind every new investment. Is it additive to increase return or lower risk, or is it duplication of an investment you already own? Most likely it’s duplication.

You don’t need to own every asset class at all times to be diversified from a risk management perspective. For example, where is it written that a portfolio must always hold international stocks when most domestic or U.S.-based companies have formidable international revenue streams?

Why must small, mid, or large-cap stocks be eternally represented in a portfolio, never to be fully liquidated? An active approach to risk management may exclude several asset classes. Frankly, at times it may help returns and reduce risk.

Without a sell or rebalancing strategy, diversification can only go so far. This step is more work for your advisor, but that’s what he or she is paid for. To help minimize losses, a portfolio requires periodic rebalancing to take profits and a liquidation component to reduce losses that may be tough to recover from.

Beware the “lunch room effect.” You own 3 mutual funds from the same fund company, XYZ Financial. All have different names, different managers, and different objectives. Every day, the three fund managers have lunch. They discuss the weather, the hometown sports team, and their investment choices.

Manager # 2 based on the parameters of the mutual fund, likes what Manager # 3 has to say about Acme Corporation. She eventually decides, after further investigation, to add Acme Corporation to her fund holdings, too. This is stealth, industry-specific risk that destroyed tremendous wealth during the tech bubble. So the lesson here is to never own more than one mutual fund per fund group to avoid overlap.

The tendency is to perceive diversification a panacea, a Snuggie that allows portfolios to be forged then forgotten, as diversification is considered the ultimate free lunch (that’ll wind up eating your lunch).

Diversification today is a convenient cop-out or weak replacement for risk management.

Featured

Shallow breath that accompanies overwhelming grief, is as heavy as glass-jagged ice that packs arteries deep in earth’s wilderness.

Cut channels form and wind through an eternity of generations and flow with cold-spilled blood of friends now enemies, lost loves and soulful regrets which claw at a mind that yearns for redemption so a soul may continue the travails toward final peace.

Air thick and pliable as cold Plasticine moves like strands of bloated snakes. They steal their way into capillaries of the lungs and search for a moment to expand. The moves are stealth. The slither is in sync. The grief strands share a common goal – to suffocate a target from the inside out.

The plan is to pierce frequently, bleed out the spirit.

And for a time, they conquer. For as long as pain and anger are your focus, they thrive.

The compound shocks from an attack, betrayal in plain sight, and the overwhelming hunger for resolution, will consume you.

Thoughts of the world as it was before the massacre is a futile mind game. An incomplete circle eternally agape.

I traversed through harsh terrain of loss, deceit, bad decisions, and denial.

You have, too.

We’ve all lost someone special. There are people in your light who are now dark. Even when people from the past fade into the reflection in a cold white mirror, you still see, feel them beckoning.

Taunting.

All the while you hear the words in solemn tone –

“I got the best of you.”

“Nothing is gonna bring you back.”

I opened up, exposed myself. I invited a cunning, powerful creature to slash and crunch down on every part of me, inside and out, with mighty teeth.

And after all the black pitch that sticks and stirs inside: From love, lust, and abandonment. A toxic burden to carry.

I was left for dead.

It’s through a frozen spray of loss and anger, that an entity larger and darker than yourself emerges from a gut-wrenching torpor. A suffocating shadow that seeks to overwhelm and absorb everything happy, anything good that you felt once.

Who you were before.

It will relentlessly follow until you consciously decide to let it go. And only then, as a revenant, you’ll understand death, a long, sterile absence, and return to the surface.

All you can do through this time is exist, wait it through. Go through the motions. Eventually, one by one, frozen limbs will tingle with the warmth of survival. The urge to break free from a blood carcass calls. It whispers, then roars in your ears to get up. Continue your life’s mission.

The greatest obstacle I observe within me as I emerge?

Scars never heal.

Something inside is rotted.

A spark in the mind still remains, but it’s nowhere what it was before the…

In the sweeping 2015 epic “The Revenant” Leonardo DiCaprio portrays a seasoned hunter and trapper guide for a rogue band of men seeking pelts through a harsh 1823 winter travail within boundaries of unchartered U.S. territories. Hugh Glass survives one of the most brutal, mesmerizing grizzly attacks ever created on film.

In a physical state near death, mentally alert but helpless, Glass witnesses a fellow trapper under his commission, John Fitzgerald, fatally stab his son Hawk. Years earlier, Glass lost his Pawnee Indian wife and vowed to always protect his half-Pawnee offspring.

This time he failed. The heartbroken hunter is left for dead (he wasn’t). Alone.

The entire movie is the searing trek of the main character from point A to point Z through hostile Indian territory, searing pain, frigid weather and harsh wilderness all for one reason.

Revenge.

The mission to find Fitzgerald and take him out drives Glass to survive overwhelming odds until a final bloody conclusion.

***************************************

Fresh, cold air reaches my lungs because I am ready to allow it. The engagement with the nature of beasts I was no match against still hurts.

I won’t deny that truth.

Yet on the exhale I see clear. In a robust-to-fade puff of smoke, I know.

I am not gone.

I am damaged. I always will be.

After all, the long, extended sharp claws and front teeth of grizzlies with purpose, those marks never heal.

But I am still alive.

I believe it to be true.

And there is still pain. Lots of pain.

Much of a mourning continues.

As a dark spirit stirs and fades.

I emerge from a frozen cocoon, I used as a hiding place.

A place of comfort I found to work things through.

I hear a voice emerge from inside what shielded me for months.

And in a message, there is the snap of power. Something bigger is telling me so. It absorbed the greatest punches so I didn’t need to, the rough stuff I couldn’t fight on my own.

There are missions and miles left, risks that need tackling, half-spirals that require a full spin before I fade into the mist of memory.

So, I am slower. Less steady. That’s fine.

Hey, cut me some slack. I’ve had several run-ins with human and corporate grizzlies over the past half decade. Swift, sharp claws (and they knew how to use them).

They’ve no doubt, left deep impressions. There are scars not healed. It feels like parts of my spirit is gone and I feel the pain from every second of it.

Good or bad. I like to leave an impression, too.

So I fight.

Do you?

For people I love and cherish, I hope there’s a spirit of charity, and most, important – loyalty. Because there’s just so little loyalty around these days.

Oh, there’s loyalty to things that in the long-run, don’t matter for shit. A company that every day is looking for ways to replace you and along the way asks for more and more until you’re spiritually broken.

An ego that thrives on empty calories as it feeds off emotional Cheetos, caloric platitudes which mean nothing except to the mirror that holds a gaze and is willing to stick its greasy, cheesy hands in places an ego doesn’t belong.

For the Fitzgeralds of this world (watch the movie), those who feign love, act like they care, lie. For people who stick knives in what you care about and all you can do is stand by helplessly?

For them?

I have zero expectations or hope.

The essence of invisible spirit that guides the cadence of the world, knows what to do with the blackness inside them.

But you, the keeper of the hate, or the past, must release it to the universe and let it work its power.

You must let the anger roll over, smash, so an entity, a spirit with cred in the cosmos, can absorb that energy and ostensibly do what’s required. Or not.

Either way.

It’s not in puny, human hands.

It’s not up to us.

It’s not in the black spirit of revenge or ‘get-even-itis’ you can live or die peacefully.

It’s when the dark ghost is cast, that your next move, a clear path, begins to expose itself.

Remember – The Fitzgeralds thrive on the sorrow they create.

So what did I learn from the movie “The Revenant?”

Plenty.

I think you can pick up a bit of wisdom, too.

Random Thoughts:

Flee from your Fitzgeralds

The ones who are cunning enough to create an illusion, a facade of care, friendship, alliance, love, a false penchant for your mission. Sooner or later they expose themselves in an ultimate, final act of betrayal.

Those people exist but you don’t want to believe it.

Well, believe it.

Or you’re going to lose someone or something very important to you.

You cannot survive engagement with an army of Fitzgeralds. If you seek to live a long fulfilling existence, anyway. You won’t make it.

I’ve had 3 Fitzs in 7 years, so I’m not saying it’s easy. Even the best of hunters miscalculate. What I’m saying is your gut, your internal clock, will go off alarmingly and warn –

The enemy of money hides in plain sight and usually has to do with a positive pattern you break to appease another, not yourself. Recently, I broke my own rule about taking on a big mortgage mostly to make somebody else happy, which is a critical error I’m paying for and need to unwind. I had a Fitzgerald in my life unleash a treacherous moment in my net worth that I’m certain will take me back a year at the least.

When you make big financial decisions, make certain to keep a level head. Don’t allow emotions to creep in and overwhelm your fiscal status.

Again, get a gut check. Ask others for their honest opinions. Consult outside, objective sources and you’ll stand a greater chance of survival.

Forgive yourself for trusting Fitzgeralds but never forgive them for their egregious behavior

Cut yourself some slack, after all, you’ve been mauled.

When witness to a crime of the heart, especially when it’s yours, timelines, memories get muddied and overpowered by emotion.

Remember -These entities have a track record of deceit. You were in the wrong place at the wrong time. Let yourself feel the sorrow, allow the darkness to consume you. It’ll be easier to release them that way.

So, forgive yourself for being human and trusting. Continue to trust the right people, however.

Over time you’ll get proficient at detecting and avoiding the Fitzgeralds.

Remain vigilant.

After the chase, after the amazing focus to survive, energy high on retribution, Glass confronts Fitzgerald in a bloody fight to the end, but it’s not what you think.

Glass could have but didn’t kill his foe.

Weary, he looked up from his anger and observed Fitzgerald’s future.

Glass realized.

“Revenge is in God’s hands, not mine.”

“Go ahead. Get your revenge. But you’re never gonna get your boy back.”

Ironically, the first honest words uttered by the enemy.

A bloodied Fitzgerald (yet alive), is released to rushing waters only to join his fate, his death, at the hands of Indians on the other side of an icy creek. Earlier on, Glass had saved a Pawnee chief’s daughter from a marauding group of French trappers who repeatedly raped and beat her. And now, the hero was about to have his vengeance at the hands of those he assisted.

At that moment, the universe was ready to close the circle. Glass was smart enough to listen, observe, and release the object of his hate to its proper destiny.

We all must do the same.

Cast out your Fitzgeralds. Allow their pasts to catch up to their presents and black out their futures. Their dark spirits will destroy them soon enough. These entities wind up following a path you do not want nor should you admire.

Cast the revenge shadow to a great power. That energy knows where to go. What’s death to you is light and absorbed by another to maintain balance of a world’s turn.

It’s merely a matter of time.

And all you need to do?

Live your life.

That’s it!

Wait outside the tree line. Observe.

As you stare into a cold mist that hangs heavy in a blue steel sky.

See again the light of those who give you peace.

Learn to appreciate the lesson.

The true love of people who care will capture your attention again, will never stop shining.

As for the Fitzgeralds?

Well, they’re already dead.

A revenant life is not one of fulfillment.

There’s a point when that anger must be unchained.

And only you will know the moment it must occur.

It’ll fall upon what drives you inside.

At that release, so will your heart be free.

But first, you will wander through a brutal wilderness.

As you must be lost to be found.

What is a revenant?

A person who has returned, especially from the dead or a long absence.

Featured

He was annoyed with me after a while. He said I asked too many questions.”

It’s tough for me to imagine speaking these words to a client or anyone seeking guidance.

I don’t have the guts. Or the hubris.

Or the stupidity.

I wonder about (and I’m thankful) for complacency among some advisers. It allows me to continue to gain thoughtful, inquisitive clients who never feel that I’m annoyed by a passion to learn.

The noblest efforts we undertake as trusted financial partners are to listen, answer questions, validate good behaviors, empower improvement and communicate effectively to our audience.

How does a prospective client – One who has a genuine curiosity in her finances, a successful saver and investor, ask “too many questions?”

If you’ve been with an adviser long enough to feel comfortable together, or maybe you’re exploring a new financial relationship, asking questions should be encouraged.

There’s no such concept as “asking too many questions.” You query enough to satisfy your need for information requested. I’ve noticed how the more self-aware an individual is about their financial situation, the more questions that arise.

The disheveled, inquisitive, seemingly frazzled (like a fox), detective was a master of detection. His questions on the surface were unassuming. Some appeared silly. However, underneath, there was a method to his madness.

Columbo knew the importance of questions no matter how insignificant they appeared

And when you were convinced he was done with the investigation.

There was always “just one more thing.”

It drove the perpetrators crazy.

Columbo was intrusive, occasionally annoying and he couldn’t care less. He was purposely oblivious. He felt he had the right to ask.

So do you. When it comes to your family’s financial well-being every question you have should be addressed.

Now’s the perfect time, too.

Why?

The market is complacent. Volatility is low.

Yet, dark clouds are forming on the horizon.

Political ill-wind is beginning to stir and capture the market’s attention, bond yields around the world are falling (some are negative). The 10-year U.S. Treasury yield is at it’s lowest close May 2013. A clear sign of economic distress. U.S. corporations are in their fifth quarter of negative earnings growth.

There’s never been a more perfect time to ask these ten questions: It would be a mistake not to.

Are you a registered investment adviser or a stock broker? There’s a difference. A big difference. When people ask me I respond: “Well, I don’t really want to help you break anything. Most likely, I’m going to help you mend something a broker, broke.” You need to ask the question and comprehend the difference.

A registered investment advisor or “RIA” is held to a fiduciary standard. According to www.thefiduciarystandard.org, a committee of investment professionals and fiduciary experts who formed in June 2009 as advocates for fiduciary-level advice:

“Registered representatives of broker-dealers are subject to a suitability standard under the Securities Exchange Act of 1934, while investment advisers are regulated as fiduciaries under the Investment Advisers Act of 1940.”

What does that mean to you? Plenty.

Fiduciaries are held to a high standard of ethics and care which affects all the advice they provide. It’s a much stricter standard. There should be no conflict of interest and if one exists, it requires clear disclosure.

The Committee for the Fiduciary Standard outlines 5 core principles of a fiduciary:

Put the client’s best interests first;
• Act with prudence, that is, with the skill, care, diligence and good judgment of a professional;
• Do not mislead clients–provide conspicuous, full and fair disclosure of all important facts;
• Avoid conflicts of interest;
• Fully disclose and fairly manage, in the client’s favor, unavoidable conflicts.

“Suitability” guides a broker to recommend an investment that is appropriates for your situation, is not held to the same standard. A broker is required to know your risk tolerance, tax bracket, and time frame for the money you seek to invest. All skeletal in nature. Yet legitimate. Well, it’s suitable.

Feels like something is missing, doesn’t it?

My belief, based on how brokerage firm compliance departments operate and an unpleasant experience with a former employer, is that suitability has been misaligned to protect the financial organization from lawsuits or arbitrations and NOT designed to safeguard individuals seeking guidance.

The Fiduciary Standard is a high calling. It’s there to position the client front and center in the financial advice model, as it should be for every professional who assists consumers with their financial decisions.

On April 6, 2016, the outdated foundation of financial services was slammed and cracked to make ground for hopefully, a safer, increasingly objective industry with the issuance of the Department of Labor’s Fiduciary Rule.

Mind you, it’s the genesis of a higher standard of care for brokers, so there’s much to be accomplished. I expect the Rule will be pushed, pulled, fine-tuned before it fully takes effect on April 10, 2017 and final policies put in place by January 1, 2018. My thought is this will be a continuous work in progress long after 2018. That’s ok. It’s a step in the right direction.

The new rule resurrects the definition of fiduciary from the 1974 ERISA – (Employee Retirement Income Security Act) and expands upon it. ERISA’s fiduciary standard outlines how a retirement plan fiduciary must act prudently and with undivided loyalty to the participants. Obviously, the retirement landscape in 1974 was very different. The 401(k) plan wasn’t in existence. Defined benefit plans, or pensions, were the most popular retirement vehicles.

Crucial elements of the rule – advice provided must be in a client’s “best interests,” full disclosure of conflicts of interest, and charge no more than “reasonable compensation,” for services. Generally, the fiduciary must sign a “Best Interests Contract” with the client that outlines how he or she will provide advice in the client’s best interest.

A broker’s financial institution will also be subject to the rule. Ostensibly, sales quotas, contests, awards or special compensation that may tempt an adviser to stray from his or her fiduciary responsibilities, will be prohibited.

The message is growing strong (there’s a long way to go), to an industry driven by sales pressure: Change your culture. In other words, those ads you run that give the appearance of fairness, caring and client first that not one consumer takes seriously? Make them reality, not fantasy.

Ethical employees who serve financial clients in publicly traded brokerage firms are torn between serving clients holistically for the long term and at the same time are up against the wall every quarter, starting from scratch, to meet outrageous quarterly sales goals and tremendous pressure to sell the hot product of the day (these tactics still exist). The internal friction can generate great turmoil and perhaps push an employee to make sales first and fail to responsibly counsel.

The mixed message from senior corporate puppets to do what’s right for a client and oh, meet big sales targets (or you’re out), builds conflict and distress. Talented workers become discouraged, burned out and move on. It’s an ancient business model. Change is required and it appears to be coming.

Slow is better than no.

Unfortunately, the recent ruling only covers retirement accounts. For now. The Security & Exchange Commission is expected to release a fiduciary standard in 2016 which would cover fiduciary responsibilities for taxable brokerage accounts. Although a uniform fiduciary standard (with the DOL), would be welcomed, it’s too early to draw any conclusion that this will occur. Nor is there any assurance that the SEC will adhere to an October release.

While the Feds work to figure it out, ask the question. Keep in mind, not every professional you engage will operate in a fiduciary capacity regardless of federal rulings. My suspicion is you’ll be hearing interesting, articulate, creative responses but not a clear “yes” or “no.”

Based on the answers received, you’ll gain valuable perspective about what’s best for you and your family’s finances.

Think fiduciary over suitability.

How much will I pay for your services?

Simple question deserves a simple answer. Unfortunately, not so simple. People share with me their frustration as they’re unclear how their current financial professionals get paid or are compensated for selling investment products.

It’s especially perplexing for mutual fund investors sold multiple share classes and perpetually unclear of how charges are incurred. A clear comprehension of the class share alphabet (A, B, C), is as thick and jumbled as the inside of Campbell’s Soup can.

B &C share classes are popular selections on the product-push list. They represent the finest alchemy in financial marketing. As consumers are generally hesitant to pay up-front sales loads like in the case of A shares (even though when taking into account all internal fees and expenses, they’re the most cost-effective choice for long-term investors,) B & C shares were created to mollify the behavioral waters.

To avoid having a difficult conversation or facing reluctance about opening your wallet and shelling out 1-4% in front-end charges that reduce the principal amount invested, the path of least resistance is to offer share classes with internal fees, marketing charges and deferred sales charges. Either way you pay. With B & C shares generally, you pay more. However, big fees reduce returns, they’re stealth. Thus, they feel less painful to invest in (even though they’re not).

Frankly, the only funds worth considering are no-load mutual funds where you can purchase or sell anytime without a commission or sales charge. Avoid the A, B, C’s all together. Meet with an hourly-fee based Certified Financial Planner or a fiduciary to help you assess your current mutual fund holdings and for recommendations based on your personal situation.

A financial professional may be compensated hourly, by annual flat fee, a percentage based on assets under management, commissions or perhaps a combination. Regardless, to make an informed decision, you must understand how your adviser puts food on the table. If you can, get it in writing.

There’s no ‘right way’ to be compensated as long as it’s fair and reasonable for services rendered. You also want to understand what motivates your broker or adviser to recommend investment vehicles. If you’re not getting straight answers, well you know what to do. Move on.

How do you incorporate my spouse, life partner and children when it comes to planning for me? You don’t exist in a vacuum. An adviser should maintain a holistic approach to financial planning and that includes communicating with loved ones and teaching children how to be strong stewards of money. The meetings, communication must be ongoing. At least annually.

Why did you select financial services as a career? I recall vividly how the stock market intrigued me through my teenage years. I never missed an episode of Wall Street Week. As early as 13 years-old I was fascinated with how markets worked.

In grade school I enjoyed helping classmates understand how our passbook savings accounts (and compound interest) worked. Every Wednesday, a bank representative from Lincoln Savings Bank would meet with our elementary school class and collect deposits and stamp our passbooks.

This question should be used to gauge a perspective financial partner’s penchant for helping others and passion for his or her role as a mission, not a job. How do you know whether a professional sincerely cares about your financial situation and goals? You’ll know it, intuitively.

What are your outside interests? A successful life is about balance. This question gets to the weekend and evening person behind the financial professional you observe from behind a desk, charts, book, and computers. You may discover activities you have in common and develop rapport on a personal level.

To gain a complete picture of the kind of person you’re entrusting with your investments is a crucial element of your interviewing process. By the way, it’s not prying. It’s curiosity. Ostensibly, you should like the individual you and your family may be working with for decades.

Can you tell me about your firm’s service standards? You want to know how many times a year you’ll be meeting with your financial partner whether in person (preferably), over the phone or web meeting like Go To Meeting. Is it quarterly? Every six months? How would you like to work as a client? What are your preferences? Will you be receiving calls and e-mails throughout the year about topics important to your financial situation like the market, economic conditions, financial planning, and fiscal changes that may affect me?

What is your investment philosophy? Recently, I meet a couple who was upset how their broker placed a million bucks into the market in one day. They believed there would exist a more thoughtful strategy for implementation especially in the face of the second-highest stock market valuation levels since the tech bubble. But THEY DIDN’T ASK. Are you ‘buy and hold?’ You seek to discover whether the adviser is merely towing the employer’s line or does outside research and shares his or her personal opinion based on research and study.

Is there a portfolio sell discipline? What is it? Frankly, if the word no, or something like it comes up, excuse yourself politely and find another adviser. This investigation is over.

The dirty little secret in financial services is that ‘sell’ is a four-letter word. I’m certain you’ve heard about missing the 10 best days in the market (brokers preach this ad nauseam). How detrimental it is to portfolio return. And it is. But what about the other side of the coin? What about the math of loss?

Per Lance Roberts, Clarity Financial’s Chief Investment Strategist:

Clearly, avoiding major drawdowns in the market is key to long-term investment success. If I am not spending the bulk of my time making up previous losses in my portfolio, I spend more time growing my invested dollars towards my long term goals.

Markets can’t be timed. That’s true. However, risk management is about controlling the math of loss which can be devastating compared to possible gains. Your broker or adviser should have a strategy you believe in to guard against market storms.

Whether it’s a conservative portfolio or asset allocation right from the beginning, or a specific sell and re-entry discipline to minimize portfolio damage, a sell strategy is crucial.

Academics and influential financial service providers are on the band wagon when it comes to sell disciplines. Whether it’s Dalbar, the nation’s leading financial services market research firm, or MIT Professor of Finance Andrew Lo, there’s a growing body of work that shows how investors spend most of their investment life (20-30 years), making up for losses, playing catch up.

Investing, closing your eyes and hoping for the best is not a wise strategy especially in a market propped up by central bank intervention and a P/E 10 ratio at 25.7, the second-highest level since the tech bubble at 44.2. The historic average is 16.7. Real price/earnings over 10 year averages are not going to drive market returns in the short term. However, as an investor, you must be aware of the environment you’re dealing with. Placing 100% of your stock allocation into the market at these levels should be a strategy you avoid, especially if you’re 5-7 years from retirement.

How will I have access to you and your team? A caring adviser will make sure you have the ability to text, access to a cell phone number, the phone contacts and e-mails of support staff and make you feel comfortable to reach out at any time. You should also expect a prompt response to voice mails within 24 hours or less.

When can I meet your clients? Advisory clients possess knowledge and intellectual gifts they love to share with others. Intimate client gatherings provide clients opportunities to communicate, generate business, form friendships. It’s rewarding to witness. The ability of clients to gather and know each other also helps new retirees transition to their next life adventures easier by hearing the life stories from people who have been there already.

Questions are an integral part of any relationship. As a friend recently taught me – not asking them in a timely fashion can create resentment and anger.

Featured

In the AMC’s hit drama “The Walking Dead,” where the world is overrun by rotting corpses with a desire to feed on the living, there’s something even greater to fear.

The survivors.

Staying alive in a post-apocalyptic society appears to bring out the worst of what’s left of humanity. People are ruthless killers. Strength in numbers is the best defense, yet poses an interesting dilemma.

One wrong move, one bad decision, and you’re history.

Just like that.

Sometimes, overcoming the most complicated of challenges comes down to the obvious. Nothing’s perfect however complexity fosters confusion which can shift focus, divert your attention. And when your enemies, especially within, outnumber you, it’s only a matter of time before.

Well. You know (it isn’t good).

The good guys devised a simple screening method.

An initial shield to determine if strangers they encounter are worth entry into their community.

Three questions.

Let’s see how you do. Will you pass or fail?

Are you team material?

Or are you best left alone to fend for yourself?

How many walkers (corpses with an appetite for the living), have you killed?

To safeguard others, a survivor must be willing to take out the undead (a shot or blow to the head does it). Plain and simple. If your zombie kills are minimal or non-existent there will be doubts about your contribution to the survival of the group.

How many people have you killed?

Unfortunately there are instances when tough decisions must be made for the sake of self-preservation. Best the number of walkers taken out exceed the number of people otherwise you may become a victim yourself.

Why?

Tread carefully. The reasons for taking out the living best be because of personal survival. Or request. You see -There are sad instances when victims of zombie bites would rather die honorably, in their control, rather than expire from the disease they carry.

They would rather not wake up. Walk around.

As I ponder the power of simple questions, whether in fact or fiction, I have come to realize how most situations, no matter how serious, can be broken down to three questions you ask yourself or others ask you.

When it comes to preparing for retirement, there are so many differing rules, theories, planning tools – in my mind I need to consider retirement similar to a zombie apocalypse.

Sort of puts things in perspective, doesn’t it?

If today, you could clear all the noise, reduce retirement planning to what concerns you the most, what you need to do to protect yourself – What three questions would you ask?

As I work with individuals to formulate personalized retirement strategies, three questions emerge consistently. As a matter of fact, it’s rare when one of these queries doesn’t arise.

Once you strip out the confusion, target the basics.

Focus comes down to three main concerns.

Random Thoughts:

A confident retirement comes down to the money coming in to a household.

Cash flow is everything.

Question #1: How much spendable income may I have on a monthly basis post-tax to keep me, or me and my spouse comfortable for 20 years? Simply put, how much can I have?

Why 20 years?

Let’s face it. The odds of becoming a centenarian are as slim as the dead coming back to life. OK, not that slim but infrequent enough to understand that age 100 shouldn’t be a default setting for retirement plans.

Everyone I counsel is asked to complete the thorough, thought-provoking life-expectancy calculator exercise at www.livingto100.com. Eight out of ten outcomes come in between 80-85 years old. Women average longer life expectancies at 83-86 years old. Per calculator results, men rarely live past 84 years old.

Thought leader Dick Wagner and author of the new book “Financial Planning 3.0,” in a recent interview with the Journal of Financial Planning, stated “financial planning is very, very young as a profession. If you believe that 1969 was the first year for the profession, then we’re into our 47th year. That’s not very many years if you compare it to other authentic professions.”

So who are we as advisers to indiscriminately assume that retirees are going to live to 100? I’m not sure why I see this occur so often. Maybe it feels safe. Perhaps it’s CYA. Regardless, it’s inaccurate.

Candidly, even if the profession were a thousand years old, longevity analysis would remain a slim, educated guess at best. I am 100 percent certain however that establishing retirement income plans to conclude at age ‘unrealistic’ is an exercise in disappointment. People won’t adhere to goals, milestones they find impossible to achieve.

Please plan for reality. Not fiction. A reach to age 100 will most likely lead to unsuccessful plan outcomes. You won’t feel secure enough to retire or you’ll wait too long thus placing the quality of life in retirement, in jeopardy.

If you believe, based on family longevity and state of health, that there’s a great probability of living to 100, by all means, don’t ignore preparing for the possibility.

The topic is challenging and uncomfortable to discuss. It requires acknowledgement of our own humanity.

A seasoned adviser doesn’t overlook or dance around the topic of longevity. He or she should handle the conversation with grace and honesty. After all, we are all going to die (and hopefully not return to life like in The Walking Dead).

It’s something we all have in common. We don’t seem to like to think about it happening before age 100, especially when it comes to retirement planning.

In the same interview financial futurist Dick Wagner continues his thoughts on the financial planning profession:

“The mission and purpose of financial planning is to work with individuals and families and their personal relationships with money and the fearsome forces that it generates. There’s something about ‘fearsome forces’ – it’s terrifying. I mean, it’s a quintessential challenge of the 21st century: just try to survive with this money stuff. People do something that’s really hard, which is to anticipate their needs of the last 20-30 years of their lives. Now how do you do that? You have no idea what your health will be, you have no idea what your date of death is, you have no idea how long you can continue to earn a living.”

Financial planners deal with plenty of their own fearsome forces. One source of angst is to have straightforward, yet sensitive discussions; balance the thin line between a portfolio and human life because as Dick Warner lamented, there are plenty of unknowns.

Take it from me – we’re not fond of zombies in the planning process but they do exist.

Before you look to have a retirement plan completed, take it upon yourself to go through a life-expectancy calculator. Sit with the outcome for a while. Do the results make sense?

Once you’re at peace with the information, share it with your financial planner. Incorporate it into your analysis. You’ll both be in sync. You’ll tackle fearsome forces together. The synergy will lead to reasonable goals, follow up and fulfillment.

Question #2: Will Social Security be there for me?

The assumption that Social Security is a dying social program, regardless of the generation, runs pervasive. Don’t underestimate the importance of properly integrating Social Security into your retirement arsenal. For the majority of Americans, this is their sole income for life.

So, let’s clear up several misconceptions.

According to financial planning thought leader Michael Kitces in a recent voluminous Kitces Report on the topic, the Social Security system is often considered “going broke” by 2034. At that time it’s believed the Social Security trust fund will be exhausted.

Most planning clients have a difficulty believing the funds will last that long. Per the analysis, the majority of benefits will still be paid through tax revenues on workers paying payroll taxes at that time.

Social Security recipients usually receive Cost-Of-Living Adjustments each year. An added bonus to an income you cannot outlive is inflation protection. Unfortunately, COLA is not in the cards for 2016 (a rare occurrence), however overall, Social Security remains the best lifetime income deal available to the masses.

It’s best a retiree in good health plan to wait until at least full retirement age (66, or 67) or possibly later to apply for Social Security. By the time I’m consulted for formal retirement planning, many recipients have already applied for benefits early – at age 62, in fear of not being “grandfathered” into the system and losing future benefits.

Unfortunately, unless a household is cash-strapped or a recipient’s health is poor, there’s rarely a reason to apply for Social Security before full retirement age.

Starting early will have a lasting impact to monthly payouts. For example, a person with a full retirement age of 66 who started Social Security at age 62 would experience a permanent 25% annual reduction in benefits.

When I began my career in financial services during the great bull market of the 80s and 90s, the numbers worked out favorably for a Social Security recipient to apply for benefits early and invest the difference.

Since the year 2000, this strategy has been less effective. Over the last sixteen years I’ve witnessed improving life spans, people working longer and unattractive returns on investment assets, which has made Social Security a formidable hedge against longevity and adverse portfolio conditions.

In addition, Social Security has become a stealth, forced ‘savings’ program for a majority of households stressed to save for retirement in the face of rising college costs, financially caring for elderly parents and adult children, underwater mortgages and chronic underemployment.

For most recipients, waiting until age 70 to take advantage of an 8% delayed retirement credit is a smart strategy. In a majority of cases a retiree should seek to postpone Social Security, enjoy a permanent 8% bump in benefits, along with annual COLA (Cost-Of-Living-Adjustments).

Question #3: What should I be afraid of? I don’t really know.

This retirement game is unfamiliar territory. You’re outside the safe or familiar zone (which in The Walking Dead, is a dangerous place to be). Don’t be shy. Nothing is off limits. After all, this is a new experience. You’re not an expert (yet) at this next life phase.

Why not ask a tenured planner what you should fear? Better yet – ask friends and associates who have been retired – what did they find scary about this new world? What had they overlooked? What are the mistakes they’ve learned from? What were their greatest oversights?

There could be enemies hiding in plain sight (it’s tough to trust anyone in a world overrun by zombies), that may be overlooked because you’re too close to the situation.

Frequently I receive questions about fear in retirement. They usually have little to do with money. Ostensibly, information regarding Social Security, healthcare costs in retirement and other crucial topics, is widely available. A comprehensive retirement plan will cover all important financial concerns as well.

What’s difficult to find because a person needs to live it to learn it, is information on how emotionally challenging it is to navigate from the accumulation side of the household balance sheet to the distribution mindset – The new reality where a retiree must depend upon his or her assets to survive. Being outside the protective walls of a job or career is rarely discussed in financial planning circles.

From my experience, it takes at least a year for a retiree to gain comfort with a change in lifestyle, a satisfactory portfolio withdrawal rate, a new purpose for a life away from the office.

In the misty whirlwind of false, trenchant phrases and gut-hemorrhaging head games you’ll be captured.

The haze created by the escape, their false feelings that conclude in emotional entrapment, will set the outer reaches of your soul ablaze like high velocity, ghost-pepper shots to the eyes.

The singed ends of nerves you never knew you had will explode in dry fire, like staccato firecrackers going off in a cloying sulfur-mist tethered by a humid summer sky.

The lies will choke off your oxygen.

Your capacity to think straight will evaporate.

You’ll feel yourself shrivel from the inside out.

Because you’re gagging on dry death.

Helplessly falling into the cracks of the parched splintered arteries.

Ground into a foundation of splintered bones and pulverized hearts.

And you won’t. Even. Know. It.

By the time you get it, you’ll be dried out completely.

The hour, the minute, the month, the year you’re shaken from their lives.

As they move to the next dirt destination.

You’ll re-live each terrifying moment.

So you see.

Sadly, you must understand.

Fresh victims are plentiful. Always close. In the wings. Waiting to be dried and shaken while you’re stirred.

Before a Duster rolls down to a new pubic town (population YOU).

Before they release you to a wind that flows on apathy and stinks with the rot of deceit.

Another poor soul is near.

Unaware.

This group? Get to know who they are.

Society is overrun with them.

They feed on on others to build themselves. They fire up egos. Their own.

The Dusters.

Beware of them.

Let me show you the way.

Let me help you understand.

Allow me to help you avoid the dusters.

Because.

If you’re a victim?

****************************************

You’re gone already.

It’s called an expiration date and it’s on your head right from the get go.

Random Thoughts:

Dusters don’t feel remorse. Apathy. Or anything. The antics, every thought they possess, is based on an end game first. the grand exit. They re-live the escape plan. The goal for them is to leave with more than they entered your life with. Their timing is perfect.

Right from the start you are in a burning house with the door padlocked shut.

Dried meat. Turned into a jerk(y).

Oh who knows what keeps them around, sometimes for years.

I rattle this around in my head every day.

Good sex, a sympathetic ear, a travel bud, shared business contacts, an image boost, outright free stuff, a paycheck for nothing, a friendship controlled for personal gain.

Who knows?

The Dusters are indeed a diverse bunch. The breed is a non-partisan feeder.

They come from all walks of life.

Frankly, they represent an epidemic. One that’s going to be around a while because the ongoing deterioration into a Tinder culture demands it. And I fear it’s just begun.

I fear there are more of them than us, now.

So the odds are they will come for you, too.

You’re gonna get dusted.

It’s just a matter of time. The day you’re shaken, swept out to the dustbin of the past.

Once Dusters have gotten what they need from you or something/someone else to play with, you are dust (dead) to them.

And if you’re stupid or unfortunate enough to fall in love with a Duster, you’ll ignore the signs because nobody can be that evil, right?

Wrong.

So. So. Wrong.

Dust storm #1– Dusters create grandiose exit-preparation stories. It’s a first assault. An initial test of your resolve. It’s an attack on your sanity. A Duster wants to gauge the power of your commitment to stick with them long enough to be damaged. Because you see, it’s not a conscious effort to hurt.

It’s a part of who they are.

So, let me ask – How much can you handle?

Duster victims are steadfast suckers.

Others are smart and flee quick.

Who are you?

Dusters swirl words into flirty-dirty demons that revolve around and within you. It’s a tactic designed to confuse a victim before the slaughter.

Since Dusters don’t trust their own actions, naturally they can’t trust yours. In addition, they have not completely shaken the packed-on remnants of past particles (which is interesting) because they abhor how some of their victims have moved on to healthy relationships.

How dare they???

You can’t make Dusters feel bad because they can’t feel. Anything. People who can’t help them and those who have outlived their usefulness are swiftly discarded.

You’re an ash in a flash.

Their love is not permanent. Frankly, there’s no such thing as love (outside of self) for this cancerous spin-off of the species. Oh, they’ll say they love you, they’ll promise long term just to keep you in the storm, as they’re not quite done with your bloody carcass, yet.

It’s like that monster grizzly. You know – In the DiCaprio film “The Revenant.”

Just when you’re convinced he’s finished tearing out your neck, ripping open your back, dragging you like a puppy toy, THE BEAR RETURNS. THE MAULING RESUMES. NO MERCY.

Each lie, a claw to the face: They’ll be a friend forever (slash). They’re working for you (slash #2). They have your back (final gash). Actions prove different. Over and over again.

Love does not reside in their core. It’s not at home there. It dies before it’s able to breach the wall.

The warm fuzzies are icy-knife-ies.

The world is indeed their stage and you’re merely rolling across, stuck in it, used in it, then released from it.

They’re comin’, they’re comin’!

Dust storm #2: Duster emotions are fleeting, float light on the breeze, subject to change in a blink. There’s nothing in the soul when it comes to feelings.

Remember – Duster’s are always on the move even when still, constantly searching for exits. Lusting for the water of another’s life because the newest victims are the juiciest!

It’s how they prosper. Duster victims are flesh commodities.

Dust a dozen.

There are so many choices, so many people they can dry out, it’s like a feeding frenzy.

“Harvest time, all the time,”is their motto.

And surprise!

Look who’s on the menu..

Dusters are ghosts, shells of humans with important stuff missing. People are nothing to them unless you have something they desire. When a Duster shakes you off, it’s done with rehearsed platitudes, false language of leaving they’ve recycled from the dusty remnants of other departures. They’ll even fool your relatives. Suck in the kids!

Dusters thrive deep in finances. They’re the cuts you never do anything about. They’re stealth hits that keep on hitting. Recently, I received an e-mail for fees, an auto-renewal from a service it took me 3 hours to cancel.

Most would rather have their money turn to dust before they halt this auto-finance terrorism. Take a day. Stop all auto-payments. Gain control. I know consumers who have lost hundreds, thousands, robo-paying for services they never use because it’s easier to pay than to stop. Huh? No.

Dusters rarely say “I’m sorry,” or admit mistakes. And why should they? You should bow. Die noble in their grace. Just dust, bury yourself before they get to it. After all, they’re terrific. You’re the reason they’re fucked up, remember?

As a matter of fact they’ll make you feel wrong for being right.

Remember that line from the classic film “Love Story?”

Yea, it’s nothing like that.

Not at all.

Identify Dusters with 3 simple inquiries. No kidding. To kill a Duster you must be the Duster (not for long because that’s not you).

Keep it simple. The best deaths occur in plain sight. Every minute. Not even Kojak would be able to figure it out.

Keep sucking, buddy. You won’t catch me!

Tell me about your long-term friendships. Dusters have few close friendships to speak of. That’s not a bad thing on the surface. Loners can be cool. You just want to get a handle on the quality of the relationships. How a Duster defines them.

If you can’t adequately get a handle on why and how these friendships are maintained, step back. If there appears to be a pattern of breakage and it’s always the fault of others, well you know what to do, right?

Describe your last break-up in detail, please. Dusters are expert ghosters. They refuse to face a victim in person, or communicate verbally, on a forever departure. They conjure up lame-ass, re-hashed excuses through e-mail or other electronic channels. This query is your most insanity-driven dive into the Duster psyche. Stay strong. You’re going in deep.

Break-ups aren’t perfect. You’re not looking for clean, neat separations. You’re seeking to identify respect for a former partner in the throes of a heartbreaking life episode.

Dusters hold below-zero respect for people who love them, especially at goodbye time.

Remember, this is their heart, a life code: They want to slap-clap you off their tails. Like they would from their jeans after a long journey on a dirty mud-cut of ground.

Tell me about something, an incident, you’re sorry about. My personal favorite. You know why? Because Dusters are rarely sorry. About anything! After all, it’s never them. Be sensitive to a consistent string of “remorse code.”

Let me explain.

Remorse codes are strings of negative roads well traveled.The same circle patterns of mistakes. Ghost-like breakups, busted engagements, cheating. Could be they’re tough heartfelt lessons. Perhaps your Duster has vowed never to do this to you. Or maybe you’re delusional and the next stop on the heartbreak express.

Have you fooled yourself, convinced yourself that it’ll be different with you?

Question: Are you up for the risk?

Are you willing to take the chance?

Well, if you do.

Then:

_ _ . _ _ _ _.. … ._ _. . . _ ..

(Morse Code for Godspeed).

It’s not Morse Code, it’s Remorse Code. Silly.

Dusters feel guilt but it’s merely an odd form of self-flagellation. A seemingly strange internal coping mechanism. A futile effort to connect with what’s shoe-string left of their humanity (who am I kidding?). There’s a peculiar sadness that arises their victims move on. Re-hydrate.

The ones who escape really irritate them. So much so they can’t visit the ground zeroes, the towns, where these survivors survive. They feel something odd – REMORSE. Well, only because the ones left behind made it through the pain parlor. Their happiness, their recovery is Kryptonite.

Go figure.

Dust storm #3: Dusters will lament to you about the love or friend who got away. How they’ve mourned. How bad they feel. Really? They don’t. Take it as a warning. A brief wet spot they sit in with us three-dimensional mortals. It’s a worm hole you must crawl through. Listen. Discover. Run!

Dusters relish the stories they create. With disparate mental fragments of dark plot-lines, they form a sick square-fits-in-a-hole puzzle designed to validate an exit strategy, a distrust, even a hatred of their prey.

Dusters believe all people are bad so they must strike.

Destroy them first. Always.

Dusters are narcissists who frolic with sharp blades yet never cut themselves. They are expert slicers, compart-mentalists, molders. They’ll work diligently to galvanize fellow Dusters against you to protect their personal lack of accountability and courage.

I tested this theory recently. I placed my head on the chopping block. It’s in the bloody basket. Rotting. It turned out exactly as I figured it would.

They are steadfast cowards at intimate human interaction, connection, above all else.

Great movie from the 1980s: Basket Case.

It’s personally rewarding to discover people who are so damn good at Duster detection and deft at avoiding attacks from Dusters and their fuck-flunkies (not a dance move from the 1970s, or is it?).

I unfortunately, am not one of those special people, proficient in these skills.

Dusters will push, twist you into a different person. A human you’ll no longer recognize. The ultimate betrayal, the way they depart, the manner in which they leave frayed ends dangling like bloody entrails on a clothesline at a zombie laundry party, will drive you insane, out of your own skull.

Featured

The recent downturn in the stock market has placed an important decision on the back burner.

It’s not strange to change direction through a storm of uncertainty. Through a volatile period it’s not unusual to move a retirement date out, continue to collect a paycheck, bolster savings and reduce debts.

I hear it often – “I’ll work just one more year.”

On the surface, it feels right to wait.

I call it ‘failure to launch.’

There’s never an opportune time to retire, regardless of the preparation and the formal financial planning undertaken to ensure lift-off. Frankly, even when the stock market is on solid footing people tend to find reasons to delay the next step.

It’s perfectly understandable. It’s human to feel vulnerable at the crossroad of a life-changing moment especially when the moment has arrived.

The financial planning process can inadvertently exacerbate “launch dysfunction.” It’s also in a planner’s nature to be conservative and advocate a decision to wait for a better time (whenever that is).

I’ve discovered after hundreds of retirement discussions and volumes of plans delivered, that the decision to wait is rooted in an overdependence on the successful outcomes of formal retirement plans designed to predict the survivability of assets to meet lifestyle expenses for three decades or longer.

But is that practical?

No.

Before you decide to undergo retirement planning, you must make peace with the fact that the entire process is extraordinarily imperfect, like you and me.

Retirement plans are 20% science and 80% forecast (or art).

Unfortunately, there are elements you will never be able to predict with complete accuracy. You may not live to 95 even though you believe it to be true. Future market returns are an educated guess at best.

Instead of waiting for every financial star to align before retirement, consider the following random thoughts:

You’re better off with formal retirement planning, than not. People who begin formal planning early on, five to ten years before retirement, increase the odds of a successful launch date compared to those who begin late or not at all.

A plan which includes a complete inventory of assets, liabilities and future goals coupled with assumptions for inflation and realistic future investment return simulations helps you gain invaluable intelligence early that can be used to create an ongoing action plan to validate positive financial habits and minimize the impact of weaknesses.

A plan is not right or wrong, successful or unsuccessful. It’s not a threat, or a reason to be chastised for poor fiscal behavior. The first iteration is the start of a long-term educational process, an awareness and ongoing tuning of financial strengths that apex at a launch point I call ‘escape velocity.’

Consider escape velocity a financial trajectory that launches a retiree successfully through the first decade of expenses and withdrawals with minimal negative impact to investment assets. Academic studies outline how the first ten years of asset drawdowns is crucial to the survival of a portfolio over the next twenty.

Within a plan, your financial life is run through a simulation to determine probabilities of success which comes down to your money lasting as long as you do (or longer if you wish to leave assets behind for others).

If your assets can make it through the first ten years successfully. And I mean at a 75% or greater probability of success, you are ready to launch into imperfect retirement mode as long as expenses are monitored annually and changes are made to reduce lifestyle expenses.

I’m not saying it’ll be clear sailing. Or you won’t need to adjust mid-flight: Work part-time, cut costs, downsize.

Most likely, you will.

I’m saying there’s a delicate balance at stake. A point of no return to consider.

Either retire early enough to enjoy the experience, forsake a perfect planning outcome, take a leap of faith, or wait until your probabilities of success through the worst market cycle is 95% or greater. By then it may be too late due to health issues and aging. The retirement you hoped for may be one you regret.

You see, this is the art part. When you’re planning to travel a path three decades long, science fades into the dark pitch of road and creativity and faith take over, more often than not.

Mentally, you must let go of perfection and consider multiple detours to navigate the imperfect.

Be overly (insanely) cautious the first five years. Academic work by financial planner, speaker and educator Michael Kitces and Professor Wade Pfau outlines how your asset allocation should be conservative in the early stages of retirement, especially in the face of lofty stock valuations.

Generally, I have retirees reduce equity exposure by 20% at the beginning of retirement and I’m not opposed to holding 2-5 years’ worth of cash or cash equivalents for withdrawals and to eventually purchase stocks at lower prices.

You’re thinking cash doesn’t earn anything. Well, it doesn’t lose anything, either. You can make up losses due to inflation. Principal erosion due to market losses is an entirely different story.

What most investors do not realize currently is that they could hold cash today and in five years will likely be better off. However, since making such a suggestion is strictly “taboo” because one might “miss some upside,” it becomes extremely important for measures to be put into place to protect investment capital from downturns.

Friend and business partner Lance Roberts provides the following chart which outlines the inflation adjusted return of $100 invested in the S&P 500 (using data provided by Dr. Robert Shiller).

The chart also shows Dr. Shiller’s CAPE ratio. We capped the CAPE ratio at 23x earnings which has historically been the peak of secular bull markets in the past. Lastly, we calculated a simple cash/stock switching model which buys stocks at a CAPE ratio of 6x or less and moves to cash at a ratio of 23x.

The value of holding cash has been adjusted for the annual inflation rate which is why during the sharp rise in inflation in the 1970’s there is a downward slope in the value of cash.

However, while the value of cash is adjusted for purchasing power in terms of acquiring goods or services in the future, the impact of inflation on cash as an asset with respect to reinvestment may be different since asset prices are negatively impacted by spiking inflation. In such an event, cash gains purchasing power parity in the future if assets prices fall more than inflation rises.

The importance of “cash” as an asset class is revealed.

While the cash did lose relative purchasing power, due to inflation, the benefits of having capital to invest at low valuations produced substantial outperformance over waiting for previously destroyed investment capital to recover.

While we can debate over methodologies, allocations, etc., the point here is that “time frames” are crucial in the discussion of cash as an asset class. If an individual is “literally” burying cash in their backyard, then the discussion of loss of purchasing power is appropriate. However, if the holding of cash is a “tactical” holding to avoid short-term destruction of capital, then the protection afforded outweighs the loss of purchasing power in the distant future.

Cash is not exciting. However, the excitement at the beginning of retirement should be about the memories you build, not the money you can potentially lose in stocks.

Cover as much fixed expenses as possible with income you can’t outlive. Maximizing Social Security payouts and minimizing taxes on those payments by coordinating benefits received with withdrawals from investment assets, can add thousands to your household cash flow over a lifetime.

Social Security is an income stream you can’t outlive and should not be discounted in your retirement analysis. It needs to be a crucial element of your written plan.

Creating a pension through the use of deferred income or single-premium annuities can supplement social security and bolster your income for life.

Investors fear annuities. Financial pundits on the radio and in print advise how annuities “are bad.” If you’re purchasing annuities, you’re most likely taking money away from them as advisors. Understand the motives behind negative blanket statements about annuities.

The combination of Social Security plus income annuities can be employed to cover expenses you must pay – think rent, food and insurance. Leaving your variable assets like stocks as supplements to your income requirements.

Avoid variable annuities. They are unnecessary and expensive. When you think negatively about annuities, it’s the variable ones you’re most likely referencing.

Decrease cash outflow throughout retirement. The first two years of retirement is a soul-searching expedition. It’s also a period where I witness retirees highly sensitive to stress and anguish from having too much ‘stuff,’ large homes and big overhead.

Reducing financial pressure by going smaller generates great emotional benefits. Monetary bandwidth can be built into your budget. If you’re prepared to reduce portfolio withdrawal rates through rough market periods without seriously inhibiting your lifestyle, then an imperfect retirement mindset can work.

An imperfect retirement strategy is not “set it and forget it.”

Throughout, you must be willing to regularly meet with your financial partner to analyze withdrawals market cycles and adjust accordingly. In addition, you need to be receptive to change and flexibility. Even be open to part-time employment to increase household income.

Featured

The conflict between the “one” and the “someone,” is highly visible, to thousands of commuters to see.

Painted on the side of an overpass, for as long as I can remember, at least 17 years, those heading south on a bustling freeway have grown accustomed to the weather-worn message.

“Be Someone.”

Between ominous rusted-steel teeth at the mouth to downtown, I find myself looking for it, expecting the usual sight of what has become a faded element of the urban landscape.

I laugh to myself every time I pass. Why do I care? Is it tradition? Beacon? Wisdom? No idea. I think -Who shall I be today? Can my identity stand the elements and test of time? Will my integrity allow me to remain or be someone?

Until.

An unidentified culprit painted over, messed with the message. A word that completely changed the tone was gone.

The day “BE SOMEONE” became “BE ONE.”

No longer was I someone. A vandal’s vandalism of vandalism merged me into life’s traffic? Houston’s road congestion is bad enough, now this, too.

I wasn’t the only one disrupted by the alteration.

There was local news coverage. Television, radio, print.

Then, as quickly as media attention emerged, an urban hero yet to be named, wronged a graffiti right.

In fresh paint, “BE SOMEONE” was back.

The message in the infrastructure had returned.

Throughout retirement, you will travel the roads, switch lanes between “BE ONE” and “BE SOMEONE.”

The best way to avoid surprises and maximize life in retirement, is to hit the gas.

Embrace both.

A “BE SOMEONE” mindset is you as you stand apart from others.

A “BE ONE” frame of reference arises as you stand together as a share of a greater whole.

Random Thoughts:

Be Someone: Retirement is the opportunity to re-awaken your true identity, rekindle inner passions. Relish the time to march to your own beat, again.

I consult with retirees who are forging a road to awareness and re-connection to what was important to them in the past. I call it a “re-acquaintance list.”

This is no bucket exercise. A bucket list is compiled of grandiose experiences, at least in my opinion. A re-acquaintance list is small in comparison yet ongoing. Like a support bridge underfoot that hasn’t been traveled completely – It’s what makes/made “you” well, “you.” It’s a return to simple passions that lead to greatness which I define as joy and richness of soul.

The relevance of career goals fade.

Greatness is achieved through less monumental actions which occupy slow whispers of time. It’s when the greatness of “be someone” is realized. For retirees, it’s a return to desires they needed to place on the backburner to earn a living, like reading or painting.

Also, they’re seeking educational and lifestyle enrichment by selecting retirement residences that exist on college campuses. For example, The Forest at Duke University offers apartments and single-family homes in a 40,000 square-foot independent wellness community. There is access to private primary care or skilled nursing in a lush, tranquil setting.

What retirees find most attractive about these communities is the chance to fully embark on the “be someone” concept. The Forest offers lifelong learning through regular in-house programs like lectures and resources by local scholars. In addition, the initiative to nourish the mind, body and spirit is appealing with access to performing arts, ballet, yoga and guided mediation. Residences may be apartments or single-family homes for an entry payment and a monthly service fee which is inclusive of all living expenses including meals.

Be One: To “be one” is to be a participant in something bigger. Here, your identity is at its best when part of a greater mission. People who remain engaged with former co-workers, provide deep experience into current projects, and participate in weekly or monthly rituals with friends or those in their communities appear most fulfilled through retirement.

An engineer who retired in 1996 still meets his high school buddies for dinner once a month on Thursdays. The members of this group have never missed a date. Unfortunately, several have passed. However, that hasn’t stopped the ritual.

In 2010, a project manager known for her skills to assemble an effective team accepted a severance package from a large pharmaceutical company. She still mentors and continues friendships with those she hired throughout a 24-year tenure.

Active retirees are involved in coffee groups. Regular meetings of people who bond over hot coffee and highly-caffeinated morning conversation. From Perry, Iowa to Hartwick, New York, these gatherings have been in existence close to a decade and contribute to mental acuity through community, support, active listening and verbal engagement. There’s no room for technology like smartphones or tablets, either.

Be Someone: March to your own drummer, walk the path that brokerage firms purposely choose to ignore and your portfolio will last as long as you do.

In a recent edition of the Journal of Financial Planning, Wade Pfau, professor at The American College re-visited the Trinity Study which appeared in the February 1998 issue of the Journal of the American Association of Individual Investors.

One of the blackest holes at brokerage firms is their continued reluctance to review, update, and contradict any study that was valid during the greatest bull market in history which was an outlier, not a common occurrence.

After all, it’s in the industry’s best interest to perpetuate the myth that stocks are a panacea regardless of cycles. Academics like Wade Pfau are leaders of the “be someone” movement and his work is crucial to your financial success in retirement.

The Trinity Study was published in 1998. The focus of the analysis was to determine the probability of portfolio success upon withdrawing 4% annually (adjusted for inflation), with a mix of long-term corporate bonds and the S&P 500 stock index. With a 50/50 asset allocation, the portfolio survived in 95% of historical rolling 30-year periods.

Per Wade Pfau, who updated the study in the August 2015 edition of the Journal of Financial Planning, today’s markets matter more to the sustainability of portfolio survival than historical outcomes.

Based on the current low interest rate environment and high stock market valuations, a sustainable 4% withdrawal rate will require a drawdown of principal. Income generated will not be enough. For new retirees this is especially dangerous as the first 10 years of portfolio withdrawals can alter permanently future portfolio longevity. If a retiree faces sequence of return risk whereby asset returns are below historical averages in the face of withdrawals that reduce principal, then portfolio success rates must be revised downward.

The outcome of the study is sobering: Wade Pfau’s simulations conclude that a portfolio with a 50% stock allocation now has a 64% probability of success with a 4% withdrawal rate, down from 95%. Success is reduced to 37% at a 5% rate.

Retirees must stay vigilant and examine portfolio withdrawals to be a step ahead of sequence-of-return risk. If portfolio distributions exceed income and appreciation for two consecutive years, withdrawal rates should be reduced for the upcoming period. It’s an exercise that should be conducted once a full year’s worth of liquidations are completed.

Be One: Retirees experience happiness when giving back to their communities. Schedule a couple of hours a week to explore a charitable passion. Serving others provides great reward for all involved. For greater fulfillment, a donation of time over money is healthier.

A list of non-profits seeking volunteers can be found in your area at www.greatnonprofits.org. You may filter by issues from “Animals” to “Women.”

From there, you can gather a deep understanding of how your non-profits of interest, operate. Written reviews by those who have donated and others who sought aid, are there to assist volunteers make informed charitable decisions.

I don’t know how the Houston “battle of the graffiti” will conclude.

Regardless, there are many ways to be “one” and “someone” in retirement. They can co-exist. Form a synergy.

Featured

I was less than an inch from my mother’s face. I could feel her breath. I spit in her eye by mistake. She was kneeling. Stare down at urban sunrise #1,201. This one? This one crossed boundaries.

Fleshy, fatty boundaries.

The tiny, crucifix attached to my underwear every morning to “keep me under God’s care,” was a four-pointed golden thorn in my side. A ritual I had grown to dread. Years of passive-aggressive defiance went ignored. I had no say in this tradition passed on from God-knows-who.

It was a worthless exercise. At least to me.

Mom never missed a day. It was her thing.

The power of an undergarment idol was fleeting. I was hesitant to bring up the topic.

Perhaps it couldn’t get good reception or a signal from the heavens buried under three layers of clothing. The thickest corduroy Korvette’s carried. Like the rabbit ears on our old black & white Panasonic television, I didn’t trust “the cross” to do the job.

Although, I come to believe that “God’s care” may have spared me the fate of the yearbook’s chubby road-bump of the year when Mr. K the third-grade gym teacher, speeding in his Pontiac, just missed turning my gut into the consistency of overcooked pasta.

To this day I believe he was intentionally seeking to run me down. I was never able to prove it. But I KNOW. The best news I heard last year was that he died two years ago.

Perhaps all that pinning finally kicked in. Nah.

Who am I kidding?

From diaper to big boy briefs, this small crucifix was a huge part of my childhood. A religious layer under layers. The safety pin increased in size, too – powerful and sharp enough to pierce undershirts and thick waistbands of white Fruit Of The Looms. It was the size of a small pocket knife. Against my skin it felt heavy, like an anchor. It was my personal spear.

Until that morning in October. I remember Mom’s delicate touch was uncharacteristically heavy. Her technique was sloppy. Like her eyes were closed. She had been fighting with dad all night. Non-stop since he staggered in from Delmonico’s after midnight. Her finesse now a fumbled mess of tangled fingers. I didn’t trust her to pin me with the usual grace. I kept looking down. Sweating. I tightened against what I believed was coming.

The pin penetrated like a hot blade. Deep through fat. Blood rolled down in a series of thick, bulbous drops and pooled at my feet now sweating and sticking to a heavily varnished wood floor.

All my exaggerated fears about this moment had come true.

What’s up Jesus? A nail in a cross. Now a pin in the abdomen? What gives?

Frustration and pain compelled me to unleash frustration in mom’s face. I was possessed. Perhaps she observed my father’s anger in me as I bellowed, cried at the top of my lungs.

“I hate God! No, I hate you, too!”

I knew I was dead. Disrespecting your mother in an Italian family doesn’t happen without dire consequences. It’s a no-win for a child. The repercussions are as close to fatal as you can get within the law. Not even police got in the middle of an Italian mother and her kid in the heat of a scolding.

The next move startled me. Her strike was a lightening bolt. Then a loud click between my ears. I felt warmth release from my nose and liquid down my throat. Since mom was lean, mostly bone, it was like getting slammed by a human sledgehammer.

The stab was nothing compared to the slap. The blood released immediately as my bleached-white crew neck t-shirt saturated red. To black.

I was petrified then.

And I am now.

Another female seeks blood. Terrific.

This time it’s my 17 year-old, 85 pound daughter.

Don’t let her petite frame fool you.

She’s a killer.

Hell.

All of us die a little each day as our children grow. That’s the way it’s supposed to be, right?

But that’s not what I’m talking about.

I study her profile. Separated by an aisle on a flight from New York.

The salt of blood overwhelms my nose. I can taste it. I’m pinned to the aluminum skin of the aircraft.

I’m claustrophobic. I’m now the insane guy you read about who opens an EXIT door miles above the earth and gets sucked into the afterlife.

I’m sweating. Underneath my skin is ice.

It’s panic. Out of nowhere. My right hand is firm around one of the plastic handles on the door. The word EXIT is taunting, telling me that things will be better if I just listen.

One pull and I’m free.

Crazy thoughts bounce inside my head. They are loud enough to drown out the sound of engines.

I ring for the attendant. I need a Bloody Mary.

All I think about is how small I am. Insignificant. As a parent I hold little if any control over her. Or me.

I’m driving blind. I’m scared. So is she. The thought escalates scare to hardcore terror. What roads will she travel? Alone. Together with another. With whom? I encourage her to consider a lesbian lifestyle. I tell her men don’t know how to wipe their asses good enough. Anything that gets her to switch teams. It’s not working. Yet. I give her advice that I know she can’t use. I’m not stupid enough to have a handle on most of what effects her. She’s her own person now. What did I miss? I know I missed something. What’s her greatest fear? I’m afraid to ask. Because I think it’s mine, too.

I’m headed for the handle on the EXIT door again. My grip is firm enough to white my knuckles.

I see my mother at 16. I study her delicate features. The cabin goes sepia. In her face and what’s beneath. In dark eyes. Pools of challenges thrive and collide. Nothing clear. Replete with angst.

From aisle seat to aisle seat I stare across and realize my mother has returned. The same edge separated by generations and together on this plane. Teetering between hope and hopelessness. A cutting blade. Back and forth inside me. The bleed I never wanted to experience again. A woman who shouldn’t have had children is alive again. Cast thee from my daughter, woman!

At times I’m hesitant to love her. It’s uncomfortable to be around her sometimes. I never closed the circle with the doppelganger. She’s a flesh mirror to the past. I see right through her and it’s my childhood, not hers. She clarifies and muddies everything.

I’m smashed in the nose thinking about the day in 2000 when my mother died on the other end of the phone while I was at work. I tried to give her peace, I did really. From my cubicle during a stock market crash. I cared more about what Intel stock was doing than stopping to comprehend that my mother would be dead before Ma Bell (she was a thing then), disconnected us.

I told her that grandpa was waiting. I heard her say she was sorry and then a man’s voice boomed in the receiver – “She’s gone.” I said nothing. Hung up. Went back to warm calling sales leads. Watching Intel. I didn’t leave work early. Didn’t think about it.

Until I finished the fake, expensive cocktail.

My daughter is frail. I see it. I accept and accommodate. Well, I accommodate. She’s delicate as a fine china plate with a crack in the middle. Her constitution sometimes strong, other times as light as tissue. I’m responsible. Well, my DNA is. It’s faulty. It carries the insanity gene. I was always scared of this. Now the ailments that took down a parent arise. The depression, especially. Today at least there’s medication. In the 70’s, psycho-doctors believed hooking your brain to electrodes and sending electricity through the head was a viable remedy.

I’m a marginal father at best. I’m not certain I’m wired for this parenting thing. I observe the actions of who I consider excellent dads and try to mirror them. I fail miserably. I hold back. Oh,on the surface I’m engaged but underneath I’m so nervous I can’t remain in the present long enough to enjoy the father/daughter moments.

I’m constantly slipping back 40 or so years to the time when I loved a woman so much yet she betrayed me by skipping out when I was a teen.

Maybe I’m not ready or mature enough to heal.

Until that return trip. Perhaps it was a lack of oxygen.

I realized that life-shifting changes do not need to arise from adversity. Sure, hardship ignites awareness. It happened for me in dramatic fashion on several occasions. However, I’ve learned that big decisions to alter course can be subtle. Uneventful. There’s a click in the head (I think) and a decision is made to change and never look back. And you don’t.

So I decide. Just like that.

She’s a savior. Not a killer.

Because that’s how easy it is.

To decide.

Random Thoughts:

I begin with gratefulness. My daughter is a connection to my past. I have been given another chance to heal by understanding through her, what my mother must have gone through at a time when depression and anxiety were ignored or denied. I know now mom must have suffered in silence. Little Italian girls were supposed to be perfect. No matter what. The impossible devil of perfection drilled into them daily. Now I get it. Finally.

All I do is try to be a better father every moment. In turn, my actions allow me to empathize and forgive a parent who battled but succumbed to the flames of inner demons.

I watched her burn. Did nothing to stop it.

I take that back.

I was ten years old. My mind was on Mad Magazine and masturbation. Not a 31 year old female with ignored mental illness in the midst of a seminal breakdown. I tried my best to understand and interpret adult situations.

I delivered cheerleader speeches. I’d stand on her bed pontificating like a midget politician – “Mom, it’s you and me against the world – We can do it! We can get through this!”

Lots of tears. They did nothing. The drugs, the men, the alcohol, the fears, the electroshock treatments, drowned out my constant pleading for a short semblance of normalcy. Topless and drunk in the courtyard of our Brooklyn apartment building on a school morning was enough to seal my fate as the freak of the neighborhood. And still I tried.

Now I know there was nothing she could do.

Through my daughter I forgive my mother for what I lost. A childhood. I came to understand how the illnesses, the fears were too much to fight. I wish I had the opportunity to tell her that internal demons are scarier than hell. I wish I could say I understand why she had pinned that stupid cross to me every day without fail.

“Please God, don’t let him inherit my weaknesses. Protect him.”

It hit me. Sitting in the exit row. Finally.

Now I know. The ritual worked.

Big changes can happen without fanfare. Just decide. Don’t make it a big deal. Stay casual. Calm. Today I’ll save more. I’ll say no to lending money to others. I’ll find another job that pays more for what I’m worth. I’ll get up and go to the gym. The less you think about it and do it, the more successful you’ll be.

Like me.

When I decided. Released my grip on the exit.

And re-entered.

Accepted the truth.

I look down and read:

“We are afraid of truth, afraid of fortune, afraid of death, and afraid of each other.”

The zealots who over the last three years have been advising investors to purchase gold. They’ve been correct for roughly two weeks. There’s been a stealth bounce in gold prices.

Frankly, gold investors appear to be in a perpetual frenzy. Pundits who preach gold are steadfast in their conviction, recommending gold no matter how low it goes. Sooner or later, they were destined to be right.

Well, here is their moment in the golden sun (for now:)

According to the 2010 peer-reviewed paper “Is Gold a Hedge or a Safe Haven? An Analysis of Stocks, Bonds and Gold,” by Dirk G. Baur and Brian M. Lucey for The Financial Review, a safe haven is defined as an asset that is uncorrelated with another asset or portfolio in times of market stress or turmoil. Gold fails to live up to the definition.

It turns out gold is relatively risky in terms of standard deviation (a measure of risk), and the largest negative returns of gold are close to the ones of stocks. Per the author “gold is generally not a safe haven for bonds in any market. Gold only functions as a safe haven for a limited time, around 15 trading days.”

Now, we’re not saying gold can’t outperform for periods. We just don’t want you to fall for the impression that the metal is some sort of hard-commodity Snuggie, or offers protection for the long term.

The lives of your investments, the heart of them, are designed to be warm and connected — to sales, to services, products, countries. What is gold connected to? Nothing. You can’t even use it to purchase toothpaste. I tried.

Once I attempted to pay for a subscription to a gold newsletter with gold. I created mass confusion. Enough for an operator to disconnect me. Before rudely dismissed, I was notified by a manager that the writers of this monthly periodical (very popular) would happily accept any of my major credit cards. Or a personal check. Which of course, is backed by the dollar balance in my bank account. Not gold.

Gold’s relevance ebbs and flows based on our fear of the unknown or circumstances beyond our control. How did something of the earth become a store of wealth? Why not apples? At least you can eat apples. If the end of the world does come, you’ll seek apples over rock.

In the apocalyptic science fiction movie “The Book of Eli,” Denzel Washington’s character uses Wet Wipes as a medium of exchange. I’d even take them over gold. Our dollars aren’t going away as a medium of exchange and will be backed by the full faith and credit of the U.S. government. We are not returning to a gold standard as much as Rand Paul would like to think.

Following a doomsday scenario, think of it this way: If gold is winning, then for the most part, you are losing. So pray it continues to be a lousy long-term investment. If gold is rising, most of everything else you own is falling. Not good. It’s in your best interest that gold fails.

There does not exist an academic study nor empirical data which proves gold as an effective inflation hedge. None. The pattern is random at best. Again, owning gold may provide a level of emotional comfort. That’s fine. More often gold prospers when there is instability or lack of confidence in a fiat currency. Could be inflation, also deflation. Regardless, the relationship to inflation or the dollar, is random at best:

Gold is portfolio protection — you’ve heard that one. The message is pervasive on television and radio. No. It has been and continues to be plain old U.S. Treasury securities. Want real diversification or protection? Cash and U.S. bonds do the job:

So you still want to own gold? If you must, keep your allocation limited to 5% of invested assets. There are several methods to consider. Obviously, you may own the medal directly — jewelry, coins, bars. You can investigate gold prices through goldprice.org.

The more efficient and liquid methods are through low-cost exchange-traded funds like SPDR Gold Shares GLD, -0.32% or no-load mutual funds. The Vanguard Precious Metals and Mining Fund, VGPMX, -1.45% which is inclusive of other precious metals in addition to miners, has an expense ratio of .29%. Regardless, you’ll require tremendous patience as an investor in this category. Be prepared for long periods of under- as well as over-performance.

Featured

In the 1993 film “Jurassic Park,” Jeff Goldblum’s character argues with the scientists who have assured him that their cloned dinosaurs cannot reproduce. “Life finds a way,” Goldblum says.

Extinct for millions of years, dinosaurs survive on the big screen. They frighten and thrill us out of our cash and generate big box-office bucks. (Their latest romp, “Jurassic World,” has grossed more than $600 million this summer.)

Dinosaurs exist in the real world, too — financial dinosaurs that stomp on your goals and chew up your money.

Don’t feel bad: These prehistoric remnants often thrive in the portfolios or financial activities of even the most astute investors. For massive creatures, they are mysteriously stealth-like when it comes to devouring cash from wallets. Life, you could say, finds a way.

Can you detect the beasts that smash portfolio performance and endanger overall financial progress? Consider these five fossils that require burial deep within the archives of financial services history.

Random Thoughts:

1. Load mutual funds

These ancient beasts roaming the asset classes of your portfolio have long since reached their life expectancy. With more than 16,000 no-load managed or index funds available, paying sales loads on mutual funds is akin to taking a big bite out of your investment returns before they have a chance to run.

Whether it’s the A-share price of admission of 3%-5.75% upfront or the creative B- and C-share classes, where load charges are supposedly deferred (but not really), the total expenses of these investments are a challenge to justify. Stay away from this Jurassic world. It will only lead to financial chaos. If you own loaded funds, monitor them regularly with a watchful eye for exit. Move into more affordable options as soon as their performance lags their benchmarks for two quarters.

2. Variable annuities

This blend of mutual funds and insurance busted out of containment long ago and has wreaked financial havoc on thousands of investors. As with the Indominus rex of “Jurassic World” — the product of combining the DNA of multiple creatures into a terrifying monster that would sell more theme park tickets — the financial services industry created these hybrids to benefit themselves through lofty commissions and high fees.

If you own a variable annuity, you’d get better acquainted with what makes this creature tick. Don’t be surprised to learn that annual expenses can be 4% or higher. That means every year a significant portion of your return gets devoured by the ravenous VariableAnnuitus rex. Pay attention to surrender or “exit” penalties that can range from 1%-10% and decrease over a period of years. These charges are designed to hold you captive in the cage with these costly beasts for as long as possible.

Work with a financial or insurance professional to devise a strategy to transfer variable annuity proceeds to less expensive alternatives. To defer taxes, an advisor, if properly licensed, can initiate a process called a 1035 exchange.

Take heart: Not all annuities are prehistoric relics. Deferred-income or single-premium income annuities are becoming more popular as ways to supplement Social Security and generate an income you cannot outlive.

3. Payday and title loans.

These types of loans for quick cash are growing in popularity. Like the velociraptors of “Jurassic World,” they don’t seem too dangerous until the sharp teeth of interest charges and other fees dig deep into your wallet. With interest rates that can easily top 300% APR, rarely are they a smart choice. Several states have passed legislation to help consumers understand how these loans work. Fast-cash lenders cater to people in a liquidity crunch, usually lower-income groups with poor credit opportunities.

The Consumer Financial Protection Bureau is gaining a better understanding of the nature and magnitude of payday, title and other installment-type loans. It’s customary for a borrower to “roll over” these loans and continue to pay fees and interest charges, thus creating a debt trap that’s tough to escape. If you must use these loans out of necessity, realize that the federal government is actively forming a framework to harness these financial beasts and determine how people can seek credit relief in an affordable manner.

4. Emotion-based investing

Our brains are primal. They’re built to keep us alive, not necessarily to maximize our investment returns.

Dalbar recently released its latest “Quantitative Analysis of Investor Behavior” study. This 21-year analysis consistently shows how poorly mutual fund investors have performed compared with market benchmarks. For example, in 2014, the average equity mutual fund investor underperformed the S&P 500 by more than 8.19%. In fact, the return from the broader market was more than double that of the average equity mutual fund investor: 13.69% vs. 5.50%.

One of the more prominent investor pitfalls is called “anchoring.” An anchor can sit heavy on net worth — like a brontosaurus on the chest. Investors who anchor are focused solely on the price they paid for an investment. If the investment turns out to be a loser, anchoring prevents the investor from selling regardless of whether conditions warrant a sale. They strive to “get even.” Anchoring results in opportunity costs or even bigger losses as additional money is put into underperforming investments. To battle this primal enemy, create a buy and sell rule for every investment or work with a professional to guide you.

5. Brick-and-mortar banks

For higher yields, exit the Jurassic period. Virtual banks can link easily to brick-and-mortar options and are FDIC-insured. Even if not for day-to-day banking, online choices are perfect for savings, especially emergency reserves which ideally should hold six to nine months’ worth of household living expenses. NerdWallet offers a comprehensive hub with savings account basics, tips to find higher savings accounts rates and a list of the best online savings accounts.

There’s no place in household balance sheets for colossal animals, especially those that have a ravenous appetite for cash. Keep the dinosaurs limited to movie choices, and financial success will be more reality than fantasy.

What are you planning to grow in your new fields? How will you tend to them? How many can you manage?”

Ely recently earned more seeds than he’s ever held. A six-figure bonus. For this Millennial, a bounty received. Smart enough to seek objective guidance and lay the groundwork for a strategy before the windfall is spread. Not to be cast to the wind. Conditions needed to be perfect for what he was seeking to grow.

“I don’t have fields. I’m from New York City, remember?”

“A seed is an organism. The shell encases life and vigor that will break out and grow strong if tended to as it should be. It works the same for money. Now that you possess financial seeds, you must consider planting them in multiple fields to reap rewards that will sustain you over a lifetime. Picture this…”

Plentiful tracts. Spider webs of rich soil. All different. Tilled with a specific mix of nutrients and attention. Fortified by a plan and philosophy designed to produce opportunities diversified enough to endure changing climates.

Investing for retirement is a robust, varied harvest that may be reaped for decades.

Here’s how an industrious Millennial became a financial farmer.

It starts with a refreshingly different philosophy about life and money. A young farmer’s mindset has the potential to send chills up the spine of every financial services organization that believe stocks are the only crops in town. Wise stewards of money understand that true diversification and investing is more than stocks.

Ely and I call it “holistic diversification.”

Stocks are not ignored; however they represent one field among four deserving attention.

According to Investopedia, diversification is “a risk management technique that mixes a wide variety of investments within a portfolio. Diversification strives to smooth out unsystematic (business) risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others. Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated.”

The information then goes on to outline how to diversify with stock investments. If diversification is truly risk management and is a technique that “mixes a wide variety of investments within a portfolio,” why is a portfolio defined solely as a mix of “domestic and international securities?” Is this the “wide variety” that controls or contains risk?

I’m sorry, this definition is not accurate. Farmers shake their heads in disbelief.

Over the years, especially since the financial crisis, stocks have become more positively correlated. In other words, in times of crisis, defensive industries like food and beverage and cyclical growth sectors like industrials have moved increasingly in the same direction: Down. The majority of stocks follow the general trend of the market, especially during bear cycles. So, when diversification among stocks is needed the most, it disappoints the most.

Holistic diversification is grander way to think and invest.

It breaks down mental barriers around money, inspires self-discovery, fosters creativity and generates a thought process where opportunities can seed, plant and prosper in a beautiful lifetime patchwork. Each field requires different levels or types of care.

That’s diversification the way it should be.

Ely (with my encouragement and his self-assessment) re-defined diversification with the wisdom of an investor three times his age (I had him write his philosophy and send to me.)

“I will seed 4 fields with my bonus to increase diversification and wealth: Personal growth (maximize the return on me), my stock and bond portfolio allocation, private investment (perhaps rental real estate or a few startups I’m interested in), and a long-term annuity to help supplement my social security and portfolio income at retirement.”

As you ponder a philosophy that blends life and money in soil where the nutrients are a unique blend of your personal needs and desires, remember to go beyond traditional thinking to cultivate multiple streams of future retirement income.

Cultivate the ROL or “Return-On-Life.” An astute farmer enriches the soil of life by nurturing mental and physical growth. A quarter of Ely’s bonus will seed recreation. A beach vacation, a personal trainer, wine flights, fine dining and a creative writing class.

Return-On-Life isn’t a mathematical calculation. The farmer’s formula is personal. Results are calculated by the health of the bounty from all the fields. A guilt-free plan that blossoms or hones a marketable skill, creates an experience, relieves stress. It’s the spending which provides the farmer a clearer head, endurance and energy to work the other fields to yield maximum output.

Add nutrients to a stock allocation but set realistic expectations. Traditional asset allocation plans deserve attention however farmers have been advised by financial media and popular publications that stocks, bonds, hedge funds and other liquid investments make up the centerpiece of the farm. I was able to help Ely question this guidance: Help him broaden his perspective about planting landscapes and think smaller about the future riches sowed from this area. I needed to set expectations. A likely scenario over the next decade is the returns from this field may reap less return, perhaps close to zero.

Using a formula from money manager Dr. John Hussman of the Hussman Funds to mathematically determine what stock market returns may look like over the next decade, the following result is calculated.

Assume GDP averages a consistent, recession-free 4% annualized growth rate, the current market cap/GDP remains at 1.25 and the current S&P 500 dividend yield of approximately 2% doesn’t change for ten years, forward stock market returns do not appear to aid a formidable bumper crop:

(1.04)*(.8/1.25)^(1/10)-1+.02 = 1.5%

Assumptions are just that: Obviously, change is the only realistic constant. These long-term estimates are based on decade-long rolling periods therefore they are highly inconsistent when it comes to short-term market cycles. Regardless, it allows a farmer to plan and diversify accordingly. The potential of this field is consistently on the radar as resources are directed most often to this space through regular contributions to a retirement plan and a taxable brokerage account.

Plant seeds in unfamiliar terrain with the richest soil for growth. The diversified farmer understands that investing in non-publicly traded ventures is risky, requires patience, yet can reap great personal and financial rewards if the landscape is properly understood and receives the correct balance of nutrients, attention and ongoing provision of resources. Tilling a private field takes passion and focus above and beyond what’s required to sustain consistent pastures. It’s a direction that requires guts to pursue. After all, that part of the farm can go busy, is fragile. A young farmer with vision handles the responsibilities with alacrity and maturity.

Ely set seeds aside for rental real estate to generate passive income and will diversify his farm more effectively than publicly-traded real estate investment trusts that correlate higher small company stocks. He’s also seeking to purchase units of a limited partnership in a wine-tasting venue opening in downtown Austin, Texas.

I’ve experienced a willingness by pre-retirees and recent retirees to invest 5-15% of their net worth in private ventures and small business franchise opportunities as a way to diversify from traditional stock and bond portfolios. It’s a growing trend as investors know they’re not getting the full story on how diversification works. They’re “reading around” Wall Street. Flanking the field, venturing out to undiscovered, fertile ground. I greatly encourage them to take the chance as long as a team we understand the impact of a formidable loss on their retirement strategy.

Grow a pension and supplement Social Security. Safe is a field. It produces the steady, ongoing sustenance a farmer can never outlive. It’s the poster child of proper diversification. An annuity that will provide reliable income to bolster Social Security. The use of insurance to transfer risk in case something goes wrong that sets our farmer back financially in the future, is a smart addition of acreage to the farm. Nothing fancy. Nothing variable: A simple deferred-income option or a single-premium immediate annuity where the farmer knows exactly the bounty to be received on a periodic basis as part of long-term retirement income planning. There’s nothing variable here. No storm fronts that can create loss and vulnerable conditions. Ely believed that this field balanced and fit perfectly into the farm he’s working.

“So you see Ely, you’re a financial farmer. You’re working at a startup in Austin. For the seeds.”

I met with silence at the other end of the phone. Ten seconds max. Felt like 60.

“You know Richard, I understand now. I’m seeking to maximize the fruit of my labor and enrich the other non-financial riches that will blossom.”

Featured

In the upcoming season of AMC’s hit series “The Walking Dead” the wolves represent a roving band of ruthless survivors. Unlike menacing characters of the past, the wolves will be the most dangerous and cold-blooded yet.

Marked by the letter “W” on their foreheads, the wolves stalk and prey on human victims. They hunt silently through the woods and appear out of nowhere to confiscate possessions no matter how meager. They kill to bolster a living dead army and use rigged truck trailers full of zombies to trap unsuspecting trespassers.

Wolves (the four-legged kind) can shadow a food source for a week before attacking. Up to 100 miles a day. They’re known to bring down prey up to 10 times larger than themselves. A pack can “intimidate” larger animals. Wear them down by denying them access to food, water and shelter. They’ll nip at a victim’s flank throughout a hunt. Eventually a large beast gives up due to blood loss and exhaustion.

The wolves are beyond the line of sight yet always watching. They appear out of nowhere. They can take the shape of things you’ve grown comfortable with.

Retirees must stay vigilant against predators that wish to impair them mentally, physically and financially. After all, when no longer earning an income from employment and depending on a pool of invested assets for survival, one can’t afford to be vulnerable for long.

Here’s how to recognize, avoid and beat the wolves in retirement.

Random Thoughts:

Stay hungry. I notice that the most successful retirees have a rekindled appetite for life. After several decades at a job, those who hunt for new skills and experiences stay mentally and physically ahead of the wolves.

Dr. George Valiant psychology professor at Harvard Medical School and his colleagues have spent over four decades corresponding with hundreds of individuals from the Study of Adult Development.

Participants shared four key elements to a healthy, enjoyable and rewarding retirement:

Play. Indoor, outdoor activities and travel. Anything goes. The healthiest retirees stick to a varied play regimen. They treat recreational endeavors seriously. Most of the retirees I counsel keep a calendar going out 3-6 months filled with a wide variety of activities from fly fishing in Colorado to Bingo at local venues.

Real wolves can play for several hours at a time. Physical activity makes them sharper for the hunt. Two-legged wolves in a sci-fi drama define play in ways I wouldn’t recommend for retirees (or anyone for that matter.)

For the first several years, many retirees are reluctant to fully embrace recreation. They feel the need to ease into it. Interestingly, new retirees share how they feel ashamed to play. They believe it’s unproductive. That’s why I help retirees alter their perceptions. We outline and discuss activities which improve other areas of their lives. Every element of play is defined by its ability to enhance mental or physical health. For example, a trip to Colorado may improve Type 2 Diabetes because time will be spent undertaking healthy activities like hiking and exploring fresh or organic food restaurants.

Spark creativity. Retirees with an appetite to stay young pursue engagements that consistently stimulate their brains and emotions. Writing, painting, photography and gardening are popular with retirees I counsel. Learning to cross boundaries builds an awareness and appreciation of living.

I request pre-retirees document the creative boundaries they wish to cross during the first three years of retirement then hold them accountable through something I call “lifestyle reporting.”

The exercise is crucial to their ongoing financial planning process. Self-discovery begins with three paragraphs motivated by three questions:

How will you nourish your soul during retirement?

What actions do you believe will take you to another level physically and mentally?

Describe your first creative step. How will you take it?

Along with crunching numbers and stress-testing portfolio withdrawal rates, it’s important for me to challenge people to think outside the employment box they’ve lived in for so long. Mentally strong individuals give themselves permission to stretch their imaginations and try things that help them feel a sense of accomplishment throughout retirement.

Don’t drop out. A long-term focus on the pack or who you spend time with during play will make a difference to quality of life. Retirees who make the effort forge new friendships and strengthen existing relationships are on a path of enrichment.

Retirees are embracing social media to stay in touch. I’m witnessing usage lead to frequent communication with grandchildren, former high-school classmates and long-lost friends. Retirees are not on social media to isolate from the outside world. Facebook is used to set up face-to-face meetups. I observe Retirees are sharing (pinning) photos of hobbies, crafts and other projects with others on Pinterest and discovering new projects to undertake. As one retiree said “Pinterest reminds me of a living community bulletin board. The images and ideas shared are stimulating.”

Never stop learning.The hunger for knowledge grows for young-at-heart retirees. There’s a renewed energy to take on education defined by the desires set aside to raise a family, build a career.

Ongoing learning grows in importance. Retirees are taking on new languages, participating in cooking classes, studying literature, embracing new physical exercise adventures like hiking, skiing and honing skills like writing to keep their minds active.

Retirees are embracing virtual reality to engage their minds. A site www.learningadvisor.com is an educational hub perfect for retirees and popular with several clients. Through their “open learning” initiative, there is access to over 1,300 web pages of free and accessible education from universities around the world. Most topics from art to finance are represented from accredited and respected universities like M.I.T.

Through www.masterclass.com, retirees are taking instruction on acting from Dustin Hoffman and writing from best-selling author James Patterson. For an affordable $90, there is lifetime access to online classes which include video lessons and interactive learning tools.

“I like this. Just talking.”

In the opening scene of the season 5 finale of The Walking Dead, one of the Wolves comes up slowly on a traveler in the deep forest. Sits down across from him calmly and begins a conversation like a long-lost friend.

With that in mind.

Beware of wolves who minimize the long-term impact of the financial crisis. In the face of short-term zero interest rates and below-average rates on longer-dated fixed investments like bonds and CDs, retirees are increasingly receptive to taking on more risk to principal.

Unfortunately, the wolves now gather in every investment regardless of traditional risk definitions. Think about how much risk you take to achieve 3-5% returns today compared to a decade ago. Nobody knows how and when the Fed will unwind from extreme accommodative policies. Bonds and stocks are more erratic as markets transition from Federal Reserve dependent to a focus on fundamentals again.

As stocks and bonds are both expensive based on historical measures, there is no such thing as a safe haven outside of cash. Retirees must understand that financial pundits who tell them different have become wolves.

Frankly, experts have grown nescient. Economists have written off the “great recession” and the worst post-WW2 economic recovery as “average.” They’re bending the numbers to suit their forecasts which showcases their lost touch with Main Street.

The majority have been wrong (big time) over the last 6 years. About everything. Pick a subject any subject: The direction of interest rates, GDP growth, inflation, corporate revenue growth, consumer spending.

The latest media talking point is how the U.S. stock market and economy can handle interest-rate hikes with minimal impact.

The commentary is pervasive.

“Stocks rise in the face of rate hikes,”

“The U.S. economy poised for above-average growth in 2015 and can handle Fed rate increases.”

Can you hear the wolves trying to sooth you? Put you off guard?

Averages and medians are great for general analysis but obfuscate the variables of each cycle.

The story is different today. GDP growth has been consistently below trend. Currently, wage growth is weak, 1-in-4 Americans are on Government subsidies, and 76% of Americans live pay check-to-pay check. This is why central banks globally, are aggressively monetizing debt in order to keep growth from stalling out. In addition, we are aging as a population which doesn’t fair well for above-average economic growth.

The average number of quarters from the first rate hike to recession has been 11 (33 months).

The average 5-year real economic growth rate was 3.08%.

The median number of quarters from the first rate hike to the next recession was 10, or 30 months.

The median 5-year real economic growth rate was 3.10%.

There have only been TWO previous times in history where real economic growth was below 2% at the time of the first quarterly rate hike – 1948 and 1980. In 1948, a recession occurred ONE-quarter later. THREE-quarters following the first rate hike in 1980.

To simplify: At the current rate of real growth the economy would head into recession much sooner based on present conditions. An important fact that most pundits ignore.

Many retirees can’t afford the negative financial impact a recession can cause. To keep the wolves at bay, regular meetings with an objective financial advisor to discuss risk management strategies are warranted especially as we get closer to a possible Fed rate hike in September.

At the least, distribution portfolios should be prepared for lower returns and greater volatility going forward. To bolster cash flow, retirees should be receptive to part-time employment which combines their passions with a need for supplemental income. For example, I know a retiree who loves animals and gets paid for providing accounting services for a group of local natural pet food stores three days a week.

Single-premium immediate annuities that generate lifetime income can reduce sequence of return risk where low or negative returns are more likely to occur. The insurance of income for life will compliment a traditional portfolio and allow a retiree to manage longevity risk and help preserve retirement spending.

“I’m taking you too. And you’re not exactly going to be alive.”

Real wolves won’t warn you before they draw blood (unlike in fiction drama.)

Retirees are smart enough to master the beasts that lurk inside and outside themselves.

It’s important to remember that wolves show suddenly and are always beyond your vision.

Now’s the time to be proactive and recognize where they prey in your mind. Your heart.

Tight in a fetal position. Her head and neck awkwardly stuck between the bottom shelf of the refrigerator and a crisper bin.

The paramedic pulled 92-pounds of stiff limbs from a cold cage. He heaved her to the linoleum kitchen floor as easy as a person tosses a used candy wrapper.

She was solid.

An overdose of pills and booze.

I was certain it was rigor mortis. I’d witnessed enough of it spending time staging G.I. Joe adventures in the plush red-draped lobby of the neighborhood funeral parlor owned by my best friend Joey.

But she wasn’t dead.

The paramedic said in nine more minutes things would have been different.

But how did he know?

I looked up at the kitchen clock. He said those words with such confidence. Who was I to doubt him?

2:51am.

In nine more.

Game over: 3:00am.

Random Thoughts:

WE ARE ALWAYS MINUTES AWAY FROM A BIG EVENT. LIFE OR DEATH. YOU NAME IT.

May not be full release of the mortal coil but some kind of game changer is imminent. As you read this a thousand of your skin cells just died. A cancer you don’t know about yet grows larger. The love of your life is about to enter your space. You’re on track for an encounter with an asshole or the greatest inspiration you ever met. A phone call away from a life-changer. A drive. A walk. A run. A jog. A fall. A rise.

Minutes humble you. Not years. Years mellow you. Minutes keep the receptors open. Allow the flood of your life and the lives of others to fill where you stand. The next move you make can change your world whether you want it to or not.

TRANSFORM NINE MINUTES INTO 9 HOURS.

Never question why a challenge, a person, an illness, an opportunity, a setback, gets thrown in your groove. The intersection came upon you from a source you’ll never be able to explain or completely understand. It’s a waste of time to trace what lead you here but worth the minutes to live the steps you’re taking now.

Signs are all around if you just let go of skepticism, lessen the noise. Whose life remains in the balance once you open your eyes, mind and heart to the signs? When a change places a purpose in the road, your brain will hum endlessly until you follow it and hum the tune every day. You’ll ignore the call at first. Wait too long and risk insanity. Eventually, a physical disease manifests. Organs die. I know.

CAN YOU STOP IN YOUR TRACKS BEFORE A PURCHASE?

The most fiscally-fit people wait before making a purchase, especially a significant one. Waiting lessens the impulse to part with money for something you don’t need. Wait nine minutes. Then nine hours. Nine days. If you still want the item, buy it. Most likely the heat will pass. Your desire will grow cold.

NINE MINUTES TO GREATNESS.

I can write the best 200 words of my life in 9 minutes. I can watch Rosie monitor the neighborhood from the open blinds in the living room and ponder how happy I am to have adopted her from the animal shelter.

Greatness is defined by the whispers of time. In the small of actions that move and make you stronger, life is lived large. It’s when greatness appears. Greatness is not earned through the validation of others. It comes when you recognize and develop talents you’ve had since youth.

When you positively affect one life, you’ve earned prominence.Like a paramedic who believed he was nine minutes early. Able to save a life.

A master of greatness.

IS IT RIGOR MORTIS OR SOMETHING WORSE? IS THERE ANYTHING WORSE?

How many people do you know who died long ago? You see them daily. They live in a perpetual fetal position. Stiff. Lifeless. Nine minutes closer to a dirt nap. They work little corporate jobs, have little middle managers who define their big fates. They don’t have time to bask in their kids or the live life stories that add richness.

My former regional manager at one of the most horrific corporate slave joints around, Charles Schwab, told me “you don’t need to see your kids play baseball or attend dance recitals. You need to be at work.”

Fuck that. I pulled my head out of the fridge. Do something in nine minutes every day that makes you glad to be here. Breathe deep. Go sit on the shitter and read comics. Take your life back. Nine minutes at a time.

YOU CAN FIGURE OUT THE FLOW OF YOUR LIFE IN LESS THAN NINE MINUTES.

Ask yourself: Are you happy right now? Where is resistance coming from? Are you working for a future that never appears? When the future is the present do you look ahead to another future? In the silent noise that vibrates in the back of your head is there regret? Anxiety? Look inside yourself for answers. Others can’t be blamed. They’re not the cause. You’ll never discover truth if you’re not accountable.

In nine minutes can you write nine reasons why you feel the way you do? That’s the flow of your life. The time that bridges big events is where flow is discovered. Or changed, re-directed, improved.

At the right angle the mirror provided a clear view of the kitchen. From the bedroom you could observe everything. The present events. Now I understand how it saw the future too.

Since mom always seemed to gravitate to the kitchen late at night, the reflection in the mirror of her pacing back and forth was not uncommon. I was a light sleeper. My habit was to wake, look in the mirror, turn away to the darkness of the wall. Many nights I was forced to get up and close the bedroom door so I couldn’t see what was going on in the rest of the apartment.

I was mad. So mad. I got up to see what was going on. Mom half on the floor. On her side. Tangled in the extra-long, engine-red cord of a dead Trimline phone. Her head inside the bottom shelf of the fridge. I touched her shoulder. Felt the freeze of her body.

2:18am.

I happened to glance at that damn kitschy cat clock.Waggy tail. Shifting eyes.

Tick. Tail. Tick. Tail. Eyes right. Eyes left.

Never forgot 2:18. Plastic cat eyes.

Taunting me.

A human accordion. She wouldn’t unfold. Still breathing. Shallow. I noticed the slight movement of a tiny chest. Up and down. Slow. Mouth open. Tongue shriveled. Lips colorless. Light blue.

Whatever you call it. The power to make a decision that would change all. Slowed down everything. An inside voice, one I never heard before. Kept asking. Slightly teasing. The repetition of the question felt forbidden. But continued. Cat tick-tock.

Featured

She rarely left the house. She was afraid of the world. We were on welfare. It embarrassed the hell out of me.

I was sent out to buy the stuff we needed to survive in the 1970’s.

Tampons, beer, vodka.

I’m sure I was sent out for food. All I remember was the embarrassment of waiting in a grocery line holding tampons and Old Milwaukee. Trying not to make eye contact.

Back then, when I was ten, the owners of the small stores knew us so I was given permission to purchase items that stole my childhood and emasculated me for a decade. I believe my mother granted “favors” to some of the shop owners based on the looks she got when we entered but I don’t have proof.

Mr. Mangini allowed me to pay for alcohol with food stamps.

Like he was doing me a big favor.

Moms today can’t afford to stay home. They don’t send their kids to liquor stores to stock up either. Well, some do. I know them.

Most don’t.

Childcare expenses can motivate people to drink.

Several facts about child care expenses will shock you; the costs weigh heavy on American households.

Child care is a major expense in family budgets, often exceeding the costs of housing, food and even college tuition.

For middle-class families, the cost of center-based child care is 15-30% of gross income. For a family of three living at the poverty level, annual center-based child care costs can take up nearly half of family income. The average cost of center-based daycare in the U.S. is $11,666 annually (or $972 a month), according to the National Association of Child Care Resource & Referral Agencies.

No wonder couples are waiting to have children.

The U.S. birth rate reached an all-time low in 2013 according to a report from the Centers for Disease Control.

Although the greatest economic recession since the Great Depression is considered history, for the majority of Americans the financial strain of underemployment, sub-par wage growth and over indebtedness remains a part of daily life.

Unfortunately, most of the burden of child-care costs fall on the family. There’s little public assistance available and the benefits are fragmented.

So what to do?

Random Thoughts:

Get a handle on offsite child-care costs for your household at least two years before having a child. The Child Care Aware Calculatorallows families to examine their financial situation both with and without the cost of child care. Factors such as cost of child care, work related expenses, monthly bills, and savings or retirement contributions are all included in the calculator.

Families will be able to get an idea of their monthly budget and how child care will impact that budget.

Bolster savings, cut expenses. I’m not saying it’s easy, but if you need to come up with another $300-$500 a month for offsite child care, mind the gap early and investigate methods to save more cash now. Meet with a certified financial professional who can help you devise a strategy.

Investigate work-related benefits as soon as possible. For example, a Dependent Care FSA lets you use pretax dollars to pay for eligible expenses related to care for your child, disabled spouse, elderly parent, or other dependent who is physically or mentally incapable of self-care, so you can work, or if you’re married, for your spouse to work, look for work or attend school full time. It’s time to do homework and contact your employer’s human resource department to understand benefits available.
The annual dollar limit on employee contributions to employer-sponsored health care FSAs is $2,550 in 2015.

The annual limit for dependent care FSAs or dependent care assistance plans (DCAPs) remains at $5,000 for qualifying individuals and those who are married and file a joint return, and will remain at $2,500 for those who are married and file separate returns.

Maximize available tax credits. If your employer doesn’t offer a flexible spending account, you can take full advantage of the child care tax credit. This credit allows you to itemize up to $3,000 in expenses per child per year, up to a $6,000 annual cap per family.

Once you’ve itemized the expenses, you can take a percentage of that and apply the tax credit.

You can use an FSA and a tax credit, however, any FSA money is applied to the tax credit cap first. If you withdraw $5,000 from an FSA, you can then itemize only $1,000 for the child care tax credit.

The percentage of expenses a family can claim steadily decreases as income rises, until families with AGI of $43,000 or more reach the minimum claim rate of 20 percent, qualifying for a maximum potential credit of $1,200. The credit is worth between 20 percent and 35 percent of child care expenses, depending on your family’s income. Meet with a tax professional early on to determine if tax credit are available to you.

Explore whether it’s beneficial for one party to remain at home. Crunch numbers using the Stay-At-Home Calculator available at www.parents.com.

After considering monthly incomes, expenses, childcare expenses, monthly work expenses and other annual expenses including federal income taxes paid, perhaps it’s a financially good idea for one party to remain at home instead of paying for professional child care. You may be surprised.

There’s no doubt child-care costs, which increase at 7% a year are a financial burden.

Research suggests investing in child care is good for the economy. Children are an investment in the future prosperity of a country. Studies show that increased access to quality, affordable child care raises employee morale and company loyalty, and can even save businesses as much as $3 billion a year, according to Child Care Aware.

Forget having kids. Why bother? It’s expensive. They won’t take care of you when you get old.

They’ll live with you until they’re 35.

People who possess zero parental instinct no longer feel pressured to have children.

Featured

What’s been my greatest advice to people once they seriously consider retirement?

No it’s not create a budget.

It’s watch the movie “Castaway.”

Take notes. Life is about to get bumpy.

Money is at the bottom of the life list for surprises. There are enough academic studies that prove how people with formal retirement planning are more successful than those who don’t plan.

No, there’s another storm front to weather.

In the 2000 film Tom Hanks portrays a frenetic FedEx systems employee obsessed with time and productivity. During a Christmas evening flight to Malaysia, his delivery plane crashes in the Pacific Ocean. He is violently tossed and cast to a remote island where he remains trapped and surrounded by cascading ocean currents. Over four years, while loved ones consider him lost (they had a funeral), and the love of his life marries and moves on Chuck Noland survives, too.

The drama is layered with lessons of acceptance, perseverance, resourcefulness and a shift in perspective that takes Tom Hank’s character to a rural Texas farm-road crossing, an old FedEx truck route he’s traveled before. Although this time, the weight of his decision is heavy.

It will change his life forever.

Once that retirement decision is made you’ll feel that weight. You’ll stand on a double-yellow line at a crossroad.

Which direction will you turn?

Here are a few lessons to navigate the first and most stinging waves of retirement.

Random Thoughts:

Those truly ready to retire have a sixth sense of sorts. You will too. As the FedEx plane plummeted from a stormy night sky, the odds of human survival were remote. As the aircraft broke apart and sank like a stone, Chuck’s instincts kicked in. Miraculously, he made it to the surface.

A lone survivor.

Pre-retirees seem to sense when their employers’ planes are headed in a different direction than they are. Those I counsel often reference turbulence at work they no longer find appealing or willing to accommodate.

Stressful projects, new bosses. The changes that were easy to overcome before are no longer palatable. If you plan accordingly for retirement, 5-7 years out, you’ll be able to control your escape, maintain focus on an exit. Like Chuck, an event will motivate you to flee. There will be a sense of urgency to depart. For example, a client who recently retired from a large corporation turned in his resignation one day before the executive suite announced the sale of the finance unit he had worked in for 16 years. That’s the uncanny sixth sense I’m talking about. Be open to the message.

Are you listening?

The first year in retirement can be challenging. Prepare to churn through darkness, all the time jolted by waves of self-discovery. When Chuck Noland surfaced he was nowhere out of peril. In the middle of nowhere there was still quite a way to go before safety.

Even those with a well thought-out financial plan are not completely prepared for retirement. The emotional part, anyway. It’s a span of dark distance I call “the black hole” as you cross from accumulating wealth to depending on it. New retirees feel vulnerable through this stage. They go through the motions. They seek a destination. A place that is not on a map because it’s created by the retiree traveling the path.

During the first year in retirement, give yourself a chance to accept life changes. Let the waves jostle you. Use time to re-discover who you were before a 40-year career dominated your life. This should be a new and enriching journey, however it begins with turbulence.

I’m sorry.

As you travel from accumulation to distribution, don’t completely sever the threads of your former environment.

In Castaway, Chuck Noland maintains his watch on Memphis time. It’s comforting to return to hours you remember pre-retirement. Recall the best about the wealth accumulation years. Nothing about you has changed. Except days formerly occupied with deadlines and meetings are now on a clock personally designed and followed by you.

A redesigned sense of value will eventually emerge but not without connection to who you were because it’s still who you are.

Isolated on a tropical island, very unfamiliar territory, the former hard-pressing executive who overlooked what’s truly important now finds survival with simple things he finds inside water-logged FedEx boxes that wash onshore. Items that connect him to life before the crash. It anchors and helps him prepare mentally for this present condition.

He manages to keep near always an antique pocket watch. A Christmas present from his girlfriend. Her photo inside. It provides focus from the time of the ill-fated flight until he’s found floating almost dead, by a cargo ship. She is Chuck’s motivation to survive. His purpose.

“She was with me on that island.”

I advise new retirees to focus on applying tenured ambitions to ventures that nurture their meaning, not their ambition. Core skills can be applied with meaning to hobbies, charities, part-time employment and travel. People, too. I observe retirees live again by spending resources on grandchildren. They’re not buying electronics or clothes or toys either. They’re purchasing experiences.

Who and what will be with you on that island called retirement?

Confide in a listener. Chuck Noland’s confidante was a Wilson-brand volley ball aptly named Wilson. The smiling face on the surface formed from a bloody hand print. Wilson became a source of comfort, a way for Chuck to work through a survival and ostensibly a harrowing escape plan.

Retirees find great comfort sharing their emotional concerns and fears with others, especially through the first year. Spouses and close friends become anchor points. Human pocket watches. Financial advisors can add piece of mind by reviewing retirement plans and budgets with retirees on a regular basis. An objective voice that provides consistent validation that their plan will work is crucial.

I have witnessed some of the greatest emotional and creative discoveries from retirees in the beginning years as long as they share open dialogue with people who care to listen.

I have read magnificent works of fiction writing, observed great paintings and other inspired works from former accountants, attorneys and other hard-driving right brain individuals who didn’t appear to be artistic at all. And I’ve known many of them for over a decade.

Chuck Noland would have never made it off the island without Wilson. I’m convinced. There was a wall of thought and belief to climb before a makeshift raft with a portable toilet sail could be constructed strong enough to encounter the terrifying tides which bordered the island.

Who are your Wilsons?

Define and live your themes. In your past life there were goals. Whether hit or miss, you defined yourself by them.

So did Chuck in his FedEx life.

Goal setting will not enhance your retirement. Themes will.

Think about it: Accomplish a goal and you immediately set another. Enjoy it briefly and anguish over the next one. If you fail, you become discouraged. Goals are no-win for the creator. They are human hamster wheels.

At the conclusion of Castaway, Chuck Noland was not driven by goals. He was no longer the same person. A roadmap of Texas, sunroof open, donned in sunglasses, he was immersed in the freedom of the path. In the passenger seat a new volleyball and an unopened FedEx package he carried throughout his ordeal. On the surface of the weathered-worn box a pair of painted angel wings now faded.

There was one last delivery to be made before continuing a new adventure. Chuck finds and leaves the package at the address of the sender along with a note that the package kept him alive.

Chuck stops to study a map at a crossroad not far from the ranch house. An attractive woman in a pickup truck pulls up alongside him.

“Where you headed?” she asks.

“I was just about to figure that out.”

“Well, that’s 83 South. And this road here will hook you up with I40 East. Um, if you turn right, that’ll take you to Amarillo, Flagstaff, California. If you head back that direction, you’ll find a whole lotta nothin’ all the way to Canada.”

As the truck pulls away, Chuck notices the wings painted on the back of her truck. Identical to the ones on the package.

He turns toward the road she’s traveling and smiles.

Retirement should be focus on roads you seek to travel. Each has meaning.

Every rock under the tires is an experience to feel.

Let the themes you wish to follow reveal their destinations.

There’s a new life in the gravel.

At a funeral a woman who recently retired asked me:

“What am I supposed to do in retirement?”

I said: “Follow what makes you human. Find what you lost. You had wings once, most likely when you were a child. Now use them to fly on the wind of themes you loved once and forgot. You know, before they were clipped by the daily grind.”

Some of the best advice I provide to retirees has little to do with money.

Featured

As a child, I was an observer. My mother didn’t have money and my dad always lived for the moment. He died with nothing.

Today, with your children bombarded with messages you need to attempt to “sneak” money lessons in whenever possible.

Success comes from changing up old beliefs about how you think you should go “money-active” with the kids, creative thinking, remaining interactive.

Praying helps.

Random Thoughts:

Be an Example – Here’s an easy one because you don’t need to say a word – your actions are enough.

You children are monitoring your feelings about finances. What is your outward expression towards debt, savings and general household financial management, especially when communicating with the family?

If your relationship with money is positive or one of control and discipline, your children will learn from the example. If your relationship with money is negative, stressful, extravagant or reckless, the kids will pick up on that, too. Smart money beliefs and actions can lead to smart money imprints by the younger generations around you.

Anytime is the Right Time – One simple question framed in a positive tone may provide the right spark to get a money conversation underway. I call it “financial curiosity.” And you can be financially curious with your child anywhere – at the mall, at the supermarket, in his or her room. If your teen makes a purchase, inquire about it with sincere interest. Out of non-threatening curiosity I ask my daughter for her reasons behind purchases and services she uses. She never feels like I’m prying (at least I don’t think so).

What compelled your child to buy a particular item? What does it do? What other choices are available? Is this item something the family may find useful? How does it work? Will this make their lives better, easier, more fun? How so? Was it a challenge to save up? You’ll gain information about the motives behind purchases and discussions regarding other money matters will blossom.

Get Them Involved – Talking about money is fine, however, it doesn’t compare to having your kids experience money management firsthand – something I call “money active.” Have the kids be responsible for specific money projects, let them fully experience the rewards and feel the sense of accomplishment when the plan is executed.

For example, provide children an opportunity to budget a family vacation or weekend getaway and then all enjoy the fruits of the labor. Partner with them to set savings goals for future purchases, especially the bigger-ticket items. Assist your teens with the research, or offer to match a percentage of the purchase price as a reward for good money habits.

Are the products or services the kids are using viable investment prospects? Now open the door to the investing conversation. And what better way to ignite the money flame — a possible investment into a company that manufactures a product or provides a service the children are passionate about.

It’s OK to Seek Help – So you’re still having difficulty getting the conversation going? Let someone else help you get the fire started. Seek assistance from an objective person who would be willing to provide money lessons to the kids; perhaps someone in the family, or a friend successful with money management, would be excited to share an experience. Don’t be reluctant to seek assistance and allow someone else to tee up your involvement. I’ve witnessed grandparents do a great job at getting through to the grandkids with stories and financial lessons.

Make Money Real Life – Be candid. Your kids like to know you’re human, and occasionally make financial mistakes. They also want to understand what you did to correct a money mishap. You may need to be a bit creative; children are accustomed to movies loaded with action and special effects.

Take time to compose a compelling story about how you faced a financial obstacle head on and came out a winner. Or if the story doesn’t end well, explain specifically what you learned.

Kids are very comfortable with technology so become “money active,” and take advantage of online money-management tools to help kids achieve financial success. For example, at www.moneyasyougrow.org there are activities that guide you to help the children work through money milestones grouped by age, beginning at 3-5 year-olds.

Begin a Money Mindset. Out of each dollar of allowance, figure out how much goes to savings, to charity and to spending. You need to help children establish guidelines early on. There are several products that make this division of money fun. Like the Money Box available from www.Moonjar.com. Also, there is an item called Money Conversations To Go which can jumpstart fun family discussions about money.

Have Children Handle Coins – It’s a great way to get very young children comfortable with money – When my daughter Haley was 3 I had her handle nickels, dimes and quarters, they were shiny and fascinated her. From an early age I would have her place the coins in a bank and shake up that bank from time to time and it would sound like a rattle of sorts. Placing the coins in the bank was a sense of accomplishment for her and it started her on the road to fiscal success – Now, at age 16, she’s become a first-rate saver!

How About a Funky Money Diary? Purchase a three-subject notebook to help the younger kids keep track of the money they want to spend, share & save. Decorate with stickers related to money or cutouts of items the kids want to purchase in the future. Interactive fun!

The most memorable interactions with children about money are ones you may overlook.

Featured

The foundation of Mom’s parenting philosophy was the use of food to pacify me. Pop Tarts, either hot from the toaster or “raw,” as I called them, straight out of the box, were my favorite. My reward for good behavior was delectable, grape and occasionally iced.

Three boxes a week for seven years. Do the math. No wonder I have a permanent roll of fat around my belly.

The iconic Kellogg’s toaster happiness is turning 51 with no signs that its 32-year streak of increasing annual sales is in danger. And my ability to discover money messages in unusual places continues as well.

Money lessons arise like the fruity-sweet smoke of a hot toaster with a pastry left in just a little too long.

Here are four random thoughts that will help you add a healthy balance (pun intended) to your financial health.

1. Finances don’t need to be so serious all the time

It’s OK when money is sweet and replete with empty calories — in moderation. For example, I buy a scratch-off lottery ticket on occasion just for fun. The odds of winning are not a factor in my decision. The thrill and anticipation of the remote chance of winning is worth $2. The ROF (return on fantasy) is a bargain. Pop Tarts and other sweet foods were considered a staple in my childhood household. That’s not a good idea. It’s OK to splurge; I encourage it as long as spending limits are established and monitored.

2. Patience has rewards

Did you know Kellogg’s was sued for damages after a Pop Tart caught fire in a toaster? Boxes now carry a warning about fire risk in a toaster. Those things can get hot. As a kid, most of the time I wouldn’t wait and forged right ahead — I’d take a piping-hot mouthful of fruit filling without worrying about the repercussions.

The length of time people hold onto stocks has been falling rapidly since the 1960s and now stands at roughly six months. Investing, especially in stocks, is a long-term discipline. If your holding period is three years or less, then you’re not investing, you’re gambling. Prepare to be burned. Work with a professional to understand your underlying motivations for investing and try to match your life goals or benchmarks with the appropriate financial vehicles. You’re more apt to enjoy the cool sweetness of being a successful — or at least a levelheaded — steward of money.

3. Variety isn’t diversification

Pop Tarts come in 25 flavors. Over the years, Kellogg’s has experimented with different shapes, offbeat themes (like Ice-Cream Shoppe flavors), even a Pop Tart variety that was split down the middle with two separate flavors in one pastry. Most of those variations lasted only a couple of years. The original flavors like grape, strawberry and brown sugar-cinnamon have endured.

The financial services industry is, for the most part, a “popped-up” marketing machine, full of air and seeking to create products that promise diversification but often fail to do so. Costly hedge funds, and inverse products that promise protection in down markets, are not necessary to achieve diversification or enhanced returns. If you’re seeking true diversification from stocks, consider guaranteed investments like U.S. Treasury securities and cash, which are part of a lean and levelheaded diversified portfolio.

4. Icing is fun, but it’s not everything

The first frosted Pop Tarts debuted in 1967 when Kellogg’s discovered that icing could withstand the heat of a toaster. The foundational concept of this legendary confection remains basic: sweet filling surrounded by a plain, pre-baked, flaky pastry crust. Yet the simple brilliance of a Pop Tart has endured for decades.

When managing finances, the least complicated rules are still worth following. Saving at least 10% of your income annually, monitoring spending, keeping credit card and other unsecured debt levels to a minimum, establishing an emergency cash reserve and investing to reach longer-term goals — these never go out of style or lose appeal.

Sure, it’s fine to add a sweet kick to money basics. For example, taking calculated risks like investing a portion of your assets in emerging-markets stocks and bonds, placing money in sectors or asset classes that have recently underperformed, and investing in learning new skills to increase your value in the workplace can top your basics off nicely.

As with Pop Tarts or any sweet treats, moderation is important. It’s the same with your money behavior. You shouldn’t pursue either extreme deprivation or all-out splurging.

Wealth is built in moderation.

I blacked out from eating three boxes of Pop Tarts during a 1970s Saturday morning cartoon block. I’m not proud of that experience, but I am wiser for it.

Just like the advertising campaign claims they’re “crazy good,” so can you be by following the lessons straight from a beloved toaster pastry.

Featured

At the wake for a client’s son, in the lobby of a plush funeral parlor, a woman I was introduced to seconds earlier looked at me and confessed four impactful words. I wasn’t aware of her personal situation however I felt the weight of her conviction.

I asked: “So, how will you make the best of the situation?”

I hear this sentiment so often, it no longer surprises me. No matter where I go. As soon as people discover I’m a financial adviser, they’re compelled to vent or share concerns, which I value. I’m honored how others find it easy to confess their fears to me. Unfortunately, I rarely listen to good stories especially when it comes to the harsh reality of present-day finances.

Saving money whether it’s for a long-term benchmark like retirement or having enough cash for future emergencies is an overwhelming task for households and this condition has improved marginally since the financial crisis ended over six years ago.

According to a June 2013 study by Bankrate.com, 76% of American families live paycheck-to-paycheck.

Is that a surprising fact?

Consider your own experience. When was your last pay raise?

Wage growth has failed to keep up with inflation and productivity for years. During the heat of the great recession in 2009, you most likely endured a cut in pay from which you never fully recovered.

On top of that, you’re probably juggling multiple responsibilities outside your original job description. To say the least, attempting to bolster savings is an ongoing challenge post financial crisis.

To develop a super-saver mindset you need to first accept the new reality and make peace with the present economic environment. Steady wage growth and job security are becoming as rare as pensions. The below-average economic conditions are more permanent than “experts” are willing to admit.

Before a change in behavior can occur, an attitude adjustment is required as saving is first and foremost, a mental exercise. For example, a super-saver feels empowered after all monthly expenses are paid, and a surplus exists in his or her checking account.

Instead of experiencing a “spending high,” super savers are happier and feel empowered when their household cash inflow exceeds expense outflow on a consistent basis.

You can feel this way, too.

I’ve witnessed hardcore spenders transform into passionate savers by thinking differently and keeping an open mind to the following…

Random Thoughts:

Embrace a simple, honest saving philosophy.

Start with tough questions and honest answers to uncover truth about your past and current saving behavior.

You can go through the grind of daily life and still not fully comprehend your motivations behind anything, including money. Ostensibly, it comes down to an inner peace over your current situation, an objective review of resources (financial and otherwise), identification of those factors that prevent you from saving more and then creating a plan to improve at a pace that agrees with who you are. A strategy that fits your life and attitude.

The questions you ask yourself should be simple and thought-provoking.

Why aren’t you saving enough? Perhaps you just don’t find joy in saving because you don’t see a purpose or a clear direction for the action. Long-term change begins with a vision for every dollar you set aside. Whether it’s for a daughter’s wedding or a child’s education, saving money is a mental re-adjustment based on a strong desire to meet a personal financial benchmarks.

What’s the end game? It’s not saving forever with no end in sight, right? Perceive saving as a way to move closer to accomplishing a milestone, something that will bring you and others happiness or relieve financial stress in case of emergencies. A reason, a goal, a purpose for the dollars. Eventually savings are to be spent or invested.

Recently, I read a story in a financial newspaper about a retired janitor who lived like a pauper yet it was discovered upon his death, that he possessed millions. What’s the joy in that? Did this gentleman have an end game? I couldn’t determine from the article whether this hoarding of wealth was a good or bad thing. I believe it’s unhealthy.

Living frugally and dying wealthy doesn’t seem to be a thought-out process or at the least an enjoyable one. The messages drummed in your head from financial services are designed to stress you out; they’re based on generating fear and doubt. And fear is a horrible reason to save, joy isn’t.

Form an honest and simple philosophy that outlines specific reasons why you need to save or increase savings. Approach it positively, three sentences max to describe your current perspective, why you’re willing to improve (focus on the benefits, the end game) then allow your mind to think freely about how you will fulfill your goals. Don’t listen to others who believe they found a better system. Find your own groove and work it on a regular basis.

Much of what you heard about saving money is false and will lead you down a path of disappointment.

The “gurus” who tell you that paying off your mortgage early is a good idea didn’t generate wealth by saving (or paying off a mortgage early). They made it by investing in their businesses and taking formidable risks to create multiple, lucrative income streams.

So before you buy in understand the personal agenda behind the messages. “Worn” personal finance advice like cutting out a favorite coffee drink and saving $3 bucks sounds terrific in theory but in the long run, means little to your bottom line. The needle won’t budge. And you’ll feel deprived to boot.

Financial media laments pervasively how you aren’t saving enough. From my experience, this message is not helpful; it fosters a defeatist attitude. People become frustrated, some decide to throw in the towel. They figure the situation is overwhelming and hopeless.

Don’t listen! Well, it’s ok to listen but don’t beat yourself up.

Saving money is personal. Meet with an objective financial adviser and don’t give much relevance to broad-based messages you hear about saving; it’s not one size fits all. Create a personalized savings plan with the end result in mind and be flexible in your approach. Appreciate the opportunity to improve at your own pace, to reach the destination for each path you create. Just the fact you’re saving money is important. The action itself is the greatest hurdle. Strive to save an additional 1% each year; it can make a difference. If not for your bank account, for your confidence.

Compound interest is a cool story, but that’s about it.

Albert Einstein is credited with saying “compound interest is the eighth wonder of the world.” Well, that’s not the entire quote. Here’s the rest: “He who understands it, earns it; he who doesn’t pays it.”

I’m not going to argue the brilliance of Einstein although I think when it comes down to today’s interest-rate environment he would be quite skeptical (and he was known for his skepticism) of the real-world application of this “wonder.”

First, Mr. Einstein must have been considering an interest rate with enough “fire power” to make a dent in your account balance. Over the last six years, short-term interest rates have remained at close to zero, long term rates are deep below historical averages and are expected to remain that way for some time. Certainly compounding can occur as long as the rate of reinvestment is greater than zero, but there’s nothing magical about the “snowballing” effect of compounding in today’s environment.

Also, compounding is most effective when there’s little chance of principal loss. It’s a linear wealth-building perspective that no longer has the same effectiveness considering two devastating stock market collapses which have inflicted long-term damage on household wealth. What good is compounding when the foundation of what I invested in is crumbling?

Perhaps you should focus on the “he who understands it, earns it; he who doesn’t pays it.”

I asked a super saver what that means to him. This gentleman interpreted it as the joy of being a lender and the toil of being a borrower. True power to a super saver ironically comes from living simply, avoiding credit card debt, searching out deals on the big stuff like automobiles and appliances.

Super-savers don’t focus much on compound interest any longer. As a matter of fact they believe it’s more a story than reality. They are passionate about fine-tuning what they can control and that primarily has to do with outflow or expenses.

This group ambitiously sets rules:

“I never purchase new autos.”

“My mortgage will never exceed twice my gross salary.”

“I never carry a credit card balance.”

“I’ll never purchase the newest and most expensive electronics.”

I know people who earn $40,000 a year save and invest 40% of their income. Then I’m acquainted with those who make $100,000 and can’t save a penny. Pick your road.

Making tough lifestyle decisions aren’t easy but doable.

I believe the eighth wonder of the world is human resolve in the face of the new economic reality. Not compound interest.

Sorry, Einstein.

Place greater emphasis on ROY (Return-On-You).

The greatest return on investment is when you allocate financial resources to increase the value of your human capital. In other words, developing your skill set is an investment that has the best potential to generate savings and wealth. Your house isn’t your biggest investment (as you’ve been told). It’s your greatest liability.

Many workers were required to re-invent themselves during or after the financial crisis. Their jobs were gone. In some cases, the industries that employed them for years were history, too. If you still need to work then you must consider directing as much as your resources as possible to multiply the ROY.

Take a realistic self-assessment of your skills, sharpen those that fit into the new economy or gain new ones to boost inflow (income). If you must stop saving to do it, do it. The increase in your income over ten to thirty years is real compounding.

People are finally beginning to understand that their current job is a dead end for wage increases or promotions. Finally, the status quo isn’t good enough, and that’s a great motivator to a ROY.

Increase inflow, decrease outflow.

Let’s take an example – You earn $50,000 a year. You save 4% annually, that’s $2,000. If you achieve a 3% return on that money annually after 20 years that comes to $54,607.91. It’s admirable; some goals can be met along the way. However, if you’re looking to retire at the end of 20 years, big changes are necessary.

Super savers embrace the math and take on big lifestyle shifts to increase cash inflow. They’re willing to take on new skills, consider bold career moves, postpone retirement, and downsize to save additional income for investment and add time to work their plan. Everything is open for discussion.

The results have been overwhelmingly positive. Super savers maintain tremendous resolve to stay in control of their household balance sheets. Emotionally this group seems less stressed removed from the chains of debt. They tell me they have achieved control over their finances.

You can’t put a price on that.

To embrace a super-saver mentality peel away habits and lessons you believed were correct and take on a different set of rules; a new, perhaps slightly unorthodox mindset.

I never forgot this one; I have a clearer understanding of what he meant. At the time, I thought he was silly.

Heck, I was in first grade. What do you expect?

The people most successful at managing finances detect, understand and respect how strong feelings and on occasion, irrational thoughts, affect their net worth.

Emotions flow deep and dark like the ink in cash. Don’t kid yourself about it.

Money has the potential to become “emotions squared” during and after a separation or divorce.

Decision-making fueled by vulnerability, can weaken financial foundations. Nobody’s immune. Unclear thinking followed by poor short-term actions has the potential to wreak years of financial havoc just at a time when you need to be most diligent with debt, spending and savings.

I’ve counseled people through money mishaps; I’ve witnessed even the most level-headed individuals make numerous money mistakes through this tumultuous time.

So how do you do your best to avoid the top money mistakes I’ve witnessed over the last 27 years?

Random Thoughts:

Watch vanity expenses. From expensive plastic surgery to lavish trips and wallet-busting new wardrobes, people have a tendency to spend impulsively and deal with the mounting debt later. Restraint is lost and stuff becomes salve for ailing pride. An attitude of “I deserve this: I’m working through a tough time,” has the potential to override common fiscal sense. Before blowing up credit card debt, consider a “FGS” exercise – (Feel-Good Spending) Exercise!

Start a wish list. Boundaries don’t exist when it comes to feel-good wishes. What will it take financially to enhance your handsome, pretty, smart, and your self-esteem?

Total the expenses required to turn desires into reality. Now, cut the sum in half. Next, categorize items from the least to most expensive. Splurge on the first two. This exercise will help you think through each purchase ostensibly minimizing emotional reaction. Also, crossing off a couple of the items can foster a positive feelings which may be enough to halt further spending on the more expensive items.

Rein in the ego dollars. I’ve seen it many times, especially with newly-divorced men. They’ll shower expensive gifts, dinners and excursions on (mostly younger) members of the opposite sex to impress and feed their bruised egos.

I’ve witnessed the spending border on reckless so much that I have helped ego spenders create “sugar-momma” and “sugar-daddy” budgets. Having an objective, non-judgmental discussion with a trusted financial partner about these expenditures can help avoid financial pitfalls and rein in the ego dollars.

For example, a gentleman asked me my thoughts about his new girlfriend’s request for $10,000 for cosmetic dentistry. We both talked through providing $2,000 (still a lot but an improvement), for a less expensive option. Unfortunately, she was upset by the offering and moved on; fortunately, a hefty financial mistake was avoided and a lesson gained.

Don’t allow anger to cost you big bucks in the long term. On occasion, separating parties are so blinded by anger they fail to comprehend how it can truly cost them. I worked with a couple who decided to split amicably.

They came in to discuss the impact of divorce on their finances which was minimal due in part to reasonable legal costs – less than $7,000, until a fight erupted over who would be primarily responsible for the family dog. The attorneys involved created additional doubts which made the situation worse. Now this once amicable, reasonable couple have spent $37,000 in legal fees with no resolution in sight. I explained they could have worked out a plan and just split the $30,000, keeping the assets for their own balance sheets, not the lawyers.

Seek perspective on every expense greater than $200. Yes, you’re an adult. However, you’re an adult with much on your mind and about to face a big life transition. The perspective is primarily about keeping one foot outside of the situation and gathering feedback from a trusted friend or financial partner. Think of it as validation for keeping a level head about spending and a good habit to consider in the early stages of a breakup. It’s also a potential confidence builder, a foundation to rebuilding self-esteem if your thought processes and expenses are validated by a confidante.

Take a full accounting of all assets and liabilities. What’s fair is fair: Make sure you receive what is due. Party members will occasionally bend over backwards to relinquish assets or overlook a full accounting based on the faith that conflicts will work out and ultimately reconciliation. Hope is one thing. Protection is another.

In good faith, a couple should be transparent with all assets and liabilities. Also, each person should prepare an “impact” budget to determine new lifestyle costs. It’s a vision of your household expenses post-divorce or separation.

A second income could be lost – that’s an impact. You may require greater childcare expenses if you’re a working adult with custody. Perhaps a smaller residence is required and you’re renting now, which can affect deductions. How will your tax situation be affected? Is there alimony or child support – how long will it last? Good questions for professionals. Best to envision what’s to come and begin a budgeting exercise.

Divorce is never easy. In the early stage, there’s a raw, emotional cord that can vibrate and throw off your financial footing.

It’s best to step back and recognize possible mental pitfalls early on.

Featured

Once upon a time, (allegedly), there was a dude named Moses who delivered chosen people from a horrific situation. Important man. Very Popular. Scruffy. Like Rick Grimes (Google if you must).

Beards are in, people.

Then there was God, a prolific writer with his finger (imagine) who decides (who’s gonna argue?) that Moses was to be the recipient of two stone tablets which pretty much outlined the Big Guy’s marching orders for humanity. I’m talking serious stuff.

I wonder what happened to those historic slabs.

I imagine them as Carl Icahn’s cocktail coasters or used to gain traction in snow wedged underneath the rear wheels of Mark Cuban’s Land Rover. Many heroic things die cowardly deaths. Keeps me grounded to think that way. I know. Sad.

Anyway.

The words, the commandments, ten of them, were as heavy as the rock parchment they were carved into.

Three out of the Ten Commandments focus on “coveting.” Wives, animals, houses, servants. Coveting is definitely a big no-no.What’s coveting?

According to Merriam-Webster it’s a verb. It means:

To want (something that you do not have) very much.

Oh you were able to take a decent stab at the definition. You did good.

You’ll see where I’m going here, be patient. Jesus, our attention spans are down to the time of the sex life of a tsetse fly (they mate once and then I think they die). Thanks internet!

What I’ve learned after 27 years serving clients, 14 of them at the “client-first” (more on that later,) branded financial-services behemoth Charles Schwab & Co, is that this marketing and legal locomotive that blows money like engine steam, aggressively seeks to barrel over everything it touches. Once they’re done, you may as well be as flat as a nickel on heated rails.

Actually, covet is too polite. Way too generous.

To be clear: Once the Schwab Kraken is released on anything or anyone, the beast attacks, grabs and seeks to destroy its prey. You are property, lock stock and barrel of the Schwab brand. Your former identity is a cold shadow of the past. Whatever was once noble, honorable, fiduciary, ostensibly is digested by the venerable appetite of frenzied shareholders.

Whatever remains of the target is regurgitated; never to resemble its original form.

For example, who’s the brilliant guy who ran Windhaven, a separately managed account, after Schwab purchased the company he founded? I can’t even find him in cyberspace.

According to a WSJ article:

“Mr. Cucchiaro left Windhaven “for personal reasons,” according to a news release issued Friday by Schwab. A spokesman for Schwab said there was “no relationship” between Windhaven’s recent performance and Mr. Cucchiaro’s departure.”

Hey I know. He changed his identity and is now living on a remote island replete with pina coladas and coconuts; or perhaps he was cast away and a soccer ball named Chuck is his cherubic best friend.

All I’m saying is once you’re swallowed and spit out by the Schwab soul sucker, you’re sort of different. Perhaps you’re missing a part of yourself. Oh hell, maybe you’re just missing (literally).

God speed, Mr. Windhaven.

Heck even the dead aren’t safe from the clutches of the corporate creature.

From what I learned firsthand (no kidding), as a client you’re worth more dead than alive. Your mortal coil may have shuffled, but at Schwab, that coil remains as warm as a newborn baby’s head during a ten-hour breech birth.

Your beloved assets shall be entombed in an eight-digit account number fortress. Money interred. Not only that, surprisingly, your heirs will deposit even more of your money at Schwab, after the last of the flowers wither on your grave and dead leaves wind blow into a pile at the foot of dear Aunt Millie’s gravestone.

I don’t know about you, but that makes me fuzzy all over. Such a caring organization. Can you feel Uncle Chuck’s death grip embrace your eternal liquid net worth? My cockles are warm. Cockles.

Are yours?

So, why should you care? Why does it matter that two financial services companies are having a very public fight over a product and sort of punching below the belt?

For me it sort of feels like the first time I watched “Godzilla vs. Mothra.” I mean I love this stuff. Pass the popcorn.

If you use financial services of any kind, there are very important messages for you here. Pay attention because as an investor you’re a winner; you’ll be a winner. Competition will benefit you.

And Adam Nash, CEO of WealthFront like Davy Crockett at the Alamo, is willing to fight.

First, Mr Nash, this isn’t Charles Schwab. It’s Charles Schwab & Co. They are not the same. I’m sorry. I learned the hard way. I paid with a kidney and half a million bucks. Throw in a family, too while you’re at it.

It’s shareholders and a CEO (Walt Bettinger) who is turning (turned) a brand into something so far from Chuck’s values and visions, that when I asked various management types in 2012, what exactly is the company’s values and visions? I could not get an answer. Zero.

You see, that above (good book from Mr. John Kador), is fantasy land now. That was 2005. Might as well be 1805.

Ancient history.

It’s Strawberry Shortcake starring in Fast & The Furious 8. Not going to happen. And you see that customer first verbiage? It’s shareholder first. Regional management told me that. Shareholders first, THEN customers. I was told.

To my face.

So you know what Mr. Nash, you win. And so do Schwab clients and other retail investors who read your words. I could feel your disheartened spirit, your awakening, your suspicion. Although I could argue specifics about fundamental indexes, in all fairness to the Schwab Robo, I find benefits to the strategy over WealthFront’s.

BUT THAT DOESN’T MATTER.

What matters is you have a vision I wasn’t aware of. I was wrong about WealthFront’s motives. What matters is you ripped a hole to expose the hypocrisy (client first on the surface, a bitch to margins, underneath), that has permeated and changed permanently the Schwab culture. And now people will know. And that’s worth something in a world post-financial crisis, which seems to be owned more than ever by financial services and central banks. Broken values and bottom lines sum up the financial sector since 2010, in my opinion.

You have a passionate mission. Unfortunately, you’ll sell out. We all do. But we can come back. We all get a chance to come back. I did. Perhaps Mr N you will have a chance, too.

Mr. Nash? I have confidence in you.

I have more confidence that you would come back because the Kraken can’t. You can’t turn the heart of the beast into Hello Kitty no matter how idealistic you seem to be in your writing.

Oh, and I really like the beard. Did you shave it? Grow it back. Because like Rick Grimes in The Walking Dead,you are now at war.

Bottom Line: The brokerage gods gave Chuck (Moses) the insights on how to treat clients and employees – the 10 commandments (which he wrote,) and then Moses shattered them and decided that coveting was OK, especially if it benefits your stock price.

Random Thoughts (for investors):

I’m not sure of this whole roboadvisor thing. It was created out of the failure of all of us in the business to do what we said we would do: Tax harvest, rebalance portfolios, be objective, provide low-cost options, and to examine a client’s financial picture. holistically before making recommendations.

I got in trouble for that at Schwab. I was there to SELL product, not help clients reach dreams. I was a Certified Financial Planner who worked at Enterprise Rent-A-Car. Which fee-based car can I get you in? Then wave goodbye.

Frankly, fuck Walt Bettinger’s dreams, I could care less. I hope he gets cast off to an island like Mr. Windhaven. Chuck needs to take his company back (again) and align with clients and employees. Only he can kill the Kraken. Wasn’t that Liam Neeson in Clash Of The Titans?

Ohhhh, that’s what this is between Robos – Clash of the titans.

I also do not believe in efficient markets which is how all robos operate. In other words, there’s no such things as asset bubbles in this arena. Well, let’s consult an expert, professor Bob Shiller from his latest edition of Irrational Exuberance.

“The point I made in 1981 was that stock prices appear to be too volatile to be considered in accord with efficient markets. Assuming that stock prices are supposed to be an optimal predictor of the dividend present value, then they should not jump around erratically if the true fundamental value is growing along a smooth trend.”

More.

“Fluctuations in stock prices, if they are interpretable in terms of the efficient markets theory, must instead be due to new information about the longer-run outlook for real dividends. Yet in the entire history of the U.S. stock market, we have never seen such longer-run fluctuations, since dividends have closely followed a steady growth path.”

Still more.

“There is a troublesome split between efficient markets enthusiasts (who believe that market prices accurately incorporate all public information, and so doubt that bubbles even exist) and those who believe in behavioral finance (who tend to believe that bubbles and other such contradictions to efficient markets can be understood only with reference to other social sciences, such as psychology).”

And investors were sold the story, are buying in strong to the story again, that stocks always outperform other investments.

More again from the professor (last one I promise, I’m a big fan):

“The public is said to have learned that stocks must always outperform other investments, such as bonds, over the long run, and so long-run investors will always do better in stocks. We have seen evidence that people do largely think this. But again they have gotten their facts wrong. Stocks have not always outperformed other investments over decades-longs intervals, and there is certainly no reason to think they must in the future.”

You gettin’ it, yet?

You’ve been sold a bill of goods to set a portfolio, always remain invested and don’t worry about the real earnings or valuation of the markets at the time you commit capital.

You see it’s easier for the financial services industry, whether it’s through the front door like WealthFront or backdoor like Schwab, when it comes to a robo, if you buy into it, to capture your assets during a bull market. And low cost is BIG volume.

And of course, it’s all long term. Long-term is a fuzzy blanket compliance departments love.

Did you forget about asset bubbles? Your portfolio hasn’t. I bet it hasn’t recovered from the 2000 Tech bubble, yet let alone the devastation from the financial crisis. And as an ultimate kick in the groin, your house went down the toilet, too.

Nope. I’m not buy and hold for me or clients. I never will be. I have sell rules because the math of loss is more devastating than the wealth from gains. But I tell you this, if I did invest that way, I’d give my money to Adam Nash because his heart is in the right place.

Yea so, I like some of the research that went into the Schwab product but you seem less like cattle with WealthFront and more the butcher. And you never want to be the cattle.

At Schwab, whether you’re an employee or client, you are expendable and a number. OK, I’m not saying WealthFront is altruistic (although after examining their numbers I still don’t get how they make money for themselves) but at least there’s a vision for Christ’s sake.

At Schwab, you’re cattle to milk the bottom line. Even after you’re dead. I’m certain of it.

Whether you invest with one or not, find a fiduciary to consult at least on an hourly basis. A fiduciary is there to help you make big, holistic life and money decisions and assist with your portfolio allocation in an objective manner. The financial services industry doesn’t want employees to be fiduciaries, to place client interests first.

It’s fine we make “suitable” recommendations, but to me that means what makes the most for the firm and ourselves. Suitability is there to protect the firm. Not you, the client. It’s to make sure that company asses are covered and boxes checked in case you get ticked off and seek to take civil action. Tax bracket, got it. I’m covered. Sell you a product, move on.

I had to pay half a million bucks to be told by a Schwab-hired attorney that “Richard Rosso, you are not a fiduciary.” No shit.

Now I am. I acted as such then and would do it again.

I’m interested to see how this battle turns out.

I’m on the side of investors, and now, Adam Nash.

I hope he prevails.

Maybe I just have a bone to pick with a large company that sought to destroy my life.

Could be.

I can’t rule it out.

All I know is we need more thought leaders like Adam to provide candid, heartfelt communication.

Featured

If people want to engage me and discuss retirement planning, the request I have is for them to take time and think back to their first memories around money. I want them to re-engage with how their views formed in the past, shape their present actions and motivations.

We undertake journeys together – back to the genesis of financial and investment philosophies.

I maintain a passion for client stories. Money plays a significant role in each; it’s a larger-than-life character in the human chapters of life.

Many of the conversations are emotional fire starters; over time, the discussions, although relevant, share commonalities. There are the ones you never forget, too.

I had someone share how adult money attitudes were shaped by spending much of his childhood summers exploring a neighborhood historic cemetery.

So, when I encountered a retiree who learned about handling finances from a rock, well, I anxiously listened.

He said – “everything I learned financially for me began with a rock.”

You see, this 69 year-old gentleman is the seventh and youngest child of a large family from Oklahoma. At 10, he discovered quiet and space and off a rural route. A wooded, gravelly patch cordoned off less than a mile from the homestead.

A perfect (and creative) location to secure his valuables from prying siblings. Over time it became a sanctuary from the vestiges of conflicts that erupt among large families.

From pre-teen to teen, an elaborate system was devised. A natural roadmap outlined on a napkin and changed often to throw off those who may become a bit curious. It was a plan which marked how valuables including baseball trading cards, cash and coins would be secured underneath a labyrinth of various-sized rocks. On a regular schedule, the hiding rocks were changed up, covered or replaced by holes under several dead trees. On numerous occasions, items were lost. Eaten.

I couldn’t imagine what was learned from all this effort. Well, I had ideas, however, I never heard of anything like this before in over two decades helping others make financial decisions.

As we met a few times, I began to understand how weathered rocks forged this man’s money behavior. How he rolled along through retirement remembering back so many years. The cold weather, the dirty hands, the lost treasures formed invaluable habits.

So, what were the lessons learned?

Random Thoughts:

Dig deep into your financial foundation on a regular basis. Lift the rock, move earth, start digging. Get dirty, expose what’s been hidden. Before financial planning, it’s time to expose the deepest fears about retirement. If frozen by fear, your outlook will suffer; you won’t take actions (even small ones) to get you to retirement; you’ll feel hopeless.

The mind has a tendency to head straight for worst-case scenarios which most of the time, are far from reality. I find when people begin exposing what makes them anxious about retirement and progressively talk openly with those they trust, practical habits are started and forged. Stress is reduced. Make a list of what you fear the most about saving for and living in retirement. Move one rock at a time. Work with a financial professional to create a goals-based, fear-minimizing game plan.

Focus on what weighs heavy on your retirement budget. For the majority of people I counsel, fixed expenses are like boulders which press hard on their abilities to enjoy retirement. I’m not going to make it sound easy to lighten up. It isn’t. It takes some tough decisions. It could mean selling a family homestead to downsize, taking inventory of material possessions to gift, sell or donate.

My greatest friend, mentor and best-selling author James Altucher and his wife Claudia recently dug through and discarded almost every physical item they own – family photos, furniture, clothing. Rows of green plastic garbage bags out to the curb for trash pickup (I saw the photos). Ok, I’m not advising to go to this extreme: I was shocked myself. However, the lesson here is to devise a strategy that works for you to minimize overhead expenses; a liquidation and downsizing mindset is empowering. It allows you to take great control over cash flow, relieves the pressure of big fixed costs throughout retirement.

Move mental rocks and check on things. Let’s face it: Many people think of their company retirement plans as dark, mysterious holes. They may salary defer the maximum contribution yet still have little knowledge about available investment choices, how money is currently allocated or they fail to rebalance holdings on a scheduled basis. In other words, to be an active saver is admirable however, once earnings are syphoned into retirement plans, many of us grow passive about digging into them and shifting the location of financial treasure. The money is buried so deep under the rock, it’s forgotten. It might as well be lost.

A company retirement account is most likely your greatest liquid asset, so it makes sense to check on its progress. Make a point to dig under the surface at least annually. Compare your current allocations to choices provided by your employer and examine how investments are divided. Sell down what’s done the best and reallocate proceeds into underperforming asset classes.

For example, in 2014 U.S. or domestic-based large-company stocks and bonds were outperformers. The majority of financial “pundits” were touting how in 2015, domestic-based stocks would continue a winning run. So far, it’s apparent that international stocks are improving due to favorable valuations and aggressive action by the European Central Bank to purchase bonds, much like our Federal Reserve has done in the past.

Get your hands dirty and expose yourself to uncomfortable conditions. I partner with several retirees who refuse to undertake actions that temporarily feel unpleasant. For a few, avoiding proper estate planning (who really wants to deal with their own mortality?), failing to embrace healthy lifestyle choices like annual health physicals, and transferring potential devastating financial risks though the use of insurance, has led to family stress and negative outcomes for retirement portfolios.

A roadmap based on maintenance of health, proper estate planning and use of insurance where it’s needed, can make a tremendous positive impact on the quality of retirement.

Through the years, this gentleman who learned so much from rocks and dirt as a child, started to understand how keeping the location of his buried treasure so secret, was not such a terrific idea. He began to comprehend how secrecy may lead to great loss. He has a trusted partner, his wife, who keeps him accountable for fitness goals, regular meetings with his financial advisor (me), his board-certified estate planner and a physician for annual head-to-toe checkups.

Recently, one of his grandsons, knowing the well-told story of the rocks, began to do some digging at the same location near the homestead (still in the family). After months of work he unearthed a plastic bag. In it was a 1955 Topps Baseball Box made of tin with 10 trading cards inside including one of legendary player Ernie Banks.

There are lessons right in front of all of us. Some we can trip over (literally).

If we dig deep and often, potential dangers can be uncovered, avoided; treasures can be revealed.

The graveled road of retirement can be a blessing or a curse.

A lesson is to unearth early on what concerns you the most and expose them to bright lights from trusted professionals and loved ones.

Your retirement path will be a challenge, but like a rock, you can weather it and remain structurally intact for decades.

Featured

My daughter at 16 decided she wanted a part-time job. This isn’t a topic we discussed in the past so it made me curious as to her motivations.

A new adventure for daughter.

Self-reflection for dad.

Shit, I’m getting old.

There’s a comforting thought.

I recalled my first job delivering “New York’s Picture Newspaper,” The Daily News, at 14 years-old. The route was one of the largest in my Brooklyn neighborhood. The lessons were indispensable and are still with me today.

Selling, customer service, handling complaints, the discipline to wake before 5am including weekends, to make sure papers were delivered before morning coffee, and the financial reward I earned sacrificing hours of my weekend to collect payment from subscribers. It was a challenge, yet I remember how the job fostered feelings of well-being through a rough childhood.

I asked people face-to-face and through social media about their first jobs as teenagers.

The positive responses were overwhelming. People couldn’t wait to share. The exhilaration was contagious. Many were vocal about how the qualities they developed working as teens, were unequivocally linked to prosperity, financial and otherwise, as adults.

So, you have a teen child or grandchild who wants to work.

It’s a bittersweet moment. You’re proud; yet there’s something strangely sad about the milestone. Perhaps your teen is embracing maturity with gusto, motivated to take on new responsibilities and taking a big step to adulthood, to independence, which makes you feel vulnerable, uncomfortable.

Yea, old.

Ok, those were my issues.

As the dust settled it was down to a stack of employer paperwork; decisions needed to be made about take-home pay (you mean I can’t spend it all?). It was a chance to work closely together and set the foundation for financial strategies that would last a daughter’s lifetime.

What did we do?

What can you try?

Random Thoughts.

Celebrate the transition from payout to paycheck. Most likely, there’s been a long-standing allowance agreement at home. Sure, you taught the basics of save, share and spend early on, helping your child formulate a simple yet impressionable strategy of monetary discipline. It’s time to re-visit the discussion. The anticipation of sweat equity adds another dimension to save, share and spend.

We had a “big picture” talk, exploring options on how to allocate her take-home pay. I was there for the genesis of her financial philosophies. What an honor. My daughter’s respect for money she would soon earn was a welcomed surprise. I never was privy to this side of her. I wanted to celebrate this accomplishment; we selected an informal setting – it comfortable for her to share deeper thoughts around save, share and spend. I sought to guide the conversation, provide reinforcement for good ideas and create positive memories around how dad was proud of her transition from payout to paycheck.

Initiate the “Level 2, Triple S” protocol.My daughter thought I was referring to a new superhero (she knows what a big Marvel fan I am). No, it’s how save, share and spend grow super in proportion. It’s the “Triple S, Level 2” rite of passage. As a child, allocating an allowance or cash for chores, was important. With a job, parents and kids make allocation decisions with greater impact.

Oh, there’s another interested party looking to share in your child’s success: It’s the IRS and taxes are now a consideration. As an employee, your child will be asked to complete a W4 form to indicate the correct amount of tax to be withheld from each paycheck. For 2015, a dependent youth doesn’t require a tax return filed if earnings do not exceed $6,300, the standard deduction amount. In our case, we felt comfortable writing “EXEMPT” on line 7 of the W4; as a dependent she will most likely not exceed $6,000 in earnings for 2015. If you believe your teen will earn more than the standard deduction, then enter 1 on Line B of the form.

Begin a Custodial Roth IRA. Working leads to new investment vehicle opportunities. We plan to fund a Custodial Roth IRA and have decided on a savings allocation of 30% each pay period to be directed into the Roth as a contribution. For 2015, the maximum that can be placed in an IRA is $5,500. Even invested conservatively, the $1,500 we plan to deposit, compounded annually at 4% has the potential to be worth over $11,000 tax-free when my teen reaches 67 years-old. Time is her greatest ally and part-time employment provides the opportunity to jumpstart her full-time retirement.

Start a cash-flow discovery exercise. As my girl has more money to spend, we plan to emphasize budgeting. It’s crucial she maximizes what’s left of her paycheck after taxes and savings. My daughter’s two biggest expenses – clothing and music downloads will be monitored using a free Smartphone budgeting application she selected.

Set aside 20 minutes each weekend to complete a “cash flow discovery” exercise to review expenditures. After all, having a pay check is exciting. Some kids get carried away and go through what I call an “independence splurge” where spending increases along with the first paychecks. Ironically, I’ve observed most of the spending is done at a teen’s place of employment as employer discounts are considered a “benefit.”

As a parent or grandparent, what have you lost and found again? At the celebration, I shared my early work memories good and bad. I opened up about the time I got fired from Stern’s Department Store. Not my proudest moment. My teen helps me re-live the best of my work habits and reminds me of why I’ve been motivated to succeed for so many years.

And teens?

Your family finds your initiative admirable; also, they’re observing how you handle multiple responsibilities outside of home and school.

Your work efforts are forging their confidence in you to handle future fiscal responsibilities.

The disciplines that begin as a working teen will sharpen and live on in you for many generations.

I remember. Straight up at 2:10am, my nightmares, which are frequent due to a three-year horrific fight with a former employer, increasingly begin with flying, howling kittens. Fur matted in life fluids. The more kittens, the stronger the images, the stronger I cold-sweat the bed.

City traffic fumes rise high and hang heavy in humidity. Inhaling them is a compromise. A choice to swelter through a New York August behind closed windows, or fool yourself into believing a blast furnace of urban air is a refreshing alternative.

I enjoyed the confluence of odors; after years they smelled like home – auto exhaust, hot tar, ethnic cooking; easier on eyes and nostrils compared to the rank of cigarettes and beer that destroyed oxygen within our small apartment.

I swear the lead-based wall paint would emit a strange odor when the worst of summer heat arrived. The walls were coated in poison. I was doomed. At night, I’d dream how the shiny white lead chips that always pooled at the baseboards, would come alive, enter my bed and eat my skin. I didn’t sleep much as a kid.

Urban dwellers fortunate enough to enjoy white noise and chilled air of window air-conditioning units were spared of the sounds of people living and dying in a restless city.

I hated them; all comfortable in their icy luxury.

And there was the laughter.

It was out of place. Insane.

No way in hell should giggling immediately shadow the screams. Horror squares in happy round holes just don’t fit. In psycho movies – sure, but not real life.

I approached the red brick and banged-up aluminum doors of single-car garages in rows that bordered the Brooklyn apartment complex I called home. The panic noises I’ll never forget, grew louder. It sounded like babies being tortured. And that disturbing chuckling.

I needed to understand what was happening. My mind screamed “run.” My legs moved ahead. Faster than the upper part of my body. Labored but steadily onward.

I was close enough to observe three pre-teen boys on a garage roof. A kitten in each hand; six small lives gripped by the mid-section, writhing desperately to break free.

The ringleader of the demon trio, I recognized immediately. That ruddy complexion, dark eyes closer to his ears than the middle of his face, the unkempt hair. No surprise it was the neighborhood terrorist, a bully to all: V. He made so much of an impression on me that today all bullies I encounter lose their identities and take on bloated, blotchy Vinny face.

He and two other soulless boys in unison were raising helpless animals above their heads and like taking jump shots with basketballs, were propelling tiny bodies into the air. I took solace in the fact that cats land on their paws. I imagined them a bit shaken, possibly injured, but still able to flee from the scene quicker than these pudgy kids could catch them.

Wishful thinking.

It was a cowardly method for a frightened brain to work through the disgusting activity unfolding before my eyes. I despised the fear that gripped me more than I hated the thugs.

Deep breaths.

I felt my speeding heart squeeze through the veins inside my ears; t temporarily blocked all other input. I needed to see the kittens. In my head, I was already cycling through save-and-escape plans; my goal was to grab as many of the injured I could carry and then run like the wind. Anywhere. Just away. How can I get this done without getting my ass kicked?

I couldn’t move faster. I tried. I was disappointed by sludgy footfalls. As I turned the corner, as I came upon the asphalt alley between long rows of garage doors, there stood a fourth culprit.

I was shocked to see a thug at ground level. Right below where the three other boys were up and into the driveway.

I didn’t recognize number four; I thought I knew all the assholes in my Brooklyn neighborhood.

Tall, sinewy. I remember the definition in his biceps that popped his veins.

A devil in red Ked sneakers.

Kitten three released – fly in the sky.

Damn the fate of gravity.

Tiny legs, paws flailing.

I was far enough from the action remain noticed but close enough to take in the fiendish plan unfolding.

Red Ked gripped a wooden bat.

In a pro-baseball player stance, he swung with full force at kittens “pitched” to him from 8 feet above.

The home run kitten-head balls were the worst.

There was living sound one second, deadly silence the next. Mid scream. Then nothing.

And again – laughter. The serious side-splitting kind.

The swing-and-miss felines dazed by a rough asphalt landing, failed to hit pavement and flee. They sort of dragged themselves off, walking with an unsteady gait. Definitely not fast enough. Much different than I imagined.

I observed the keen sweat beads on Vinny’s face as he maintained visual contact on the shaky cat balls.

Close to ripe for another pitch.

I prayed for a strike-out afternoon.

I stood unnoticed. In front of a garage – door open. Empty, dark. I sauntered into the black to gather my wits. I needed to think fast. I glanced upon an abandoned tire iron in a back corner. Upright against a cinder block wall, begging me for my attention. Not sure how I noticed it in the darkness but there it was. Calling me.

I grabbed for it hard. I held on to it like it was a lifeguard and I was about to go under for a third time.

As I accepted what I needed to do.

From dark to light.

Firm stride onward.

Closer now to red Keds, I’m able to observe how his sneakers were white at one time. Sick to my stomach. He looked at me then.

I was the next fat pitch.

No matter what I was in a strikeout zone.

No matter what.

Secure in a place where dead kittens don’t interrupt the summer, my life and ultimately my dreams (nightmares).

At one time, any time, you’re at risk of becoming a dead kitten. Something bigger and menacing will swing at you, long to crush your skull, ruin what’s left of your existence.

For three years I’ve been hit repeatedly by a large corporate red Ked, a former employer spinning outright lies, bashing my reputation, attempting to take me out and away from the profession I love.

Oh, I’m staggering, my gait a bit shaky, but I won’t be tossed in front of high-paid legal bullies for another chance at a feeding frenzy. They took much from me, already. Money, family, physical and mental health. But I’m still here. And I have found my weapons.

Ready to strike. My turn to swing.

It’s these incidents, the events that position me next in line behind the next dead kitten, that ultimately define how quickly I escape and survive (thrive). Unfortunately, I know Louisville Sluggers continue to lurk; bullies are like that. Life is good. Then they come out of nowhere just to fuck with you. Dryer lint can catch on fire and take the house down with it. I heard that.

Whatever swings with murder in its eyes, will eventually tire and move on because it can’t kill me. What stays after the hit sharpens my resolve, clarifies me and steels my purpose. And I’m not sure what energy stays exactly, but I’m glad for it. Like a warm, comforting shadow. Bullies and dead kittens show up right before defining moments.

It’s all about tire irons. The strongest arsenal, the most effective weapons I possess reveal themselves deep in black corners. Just when I think I’m a sitting duck, an obliterated feline, I accept and allow what’s about to happen as if I chose it. At that point, I am a clear thinker. A fighter.

Many people look for hope in light. Not sure I get it. I’ve learned that you must venture and stumble through darkness to discover what’s good. The universe reveals itself and nurtures me when I accept my fate and understand deeply that what I’m experiencing, as painful as it may be, needed to occur.

It couldn’t have happened any other way.

Looking back, those challenging episodes have formed a perspective I’ve used to help others make their way through red Ked moments.

Death is only the beginning. A music legend once told me that death is only the beginning. Near death, too. And before he passed, he told me again. I’m thinking in life we face several deaths. Illness, divorce, loss of inner circle relationships. And the beat goes on. Then stops. Then continues. The beating is the same, the sound is different.

Before nightfall I sit in the backyard, my dog Rosie next to me. I ponder who and what I lost up to then. I sort of feel like Michael Corleone at the end of Godfather III. Alone. Thinking in my last scene I should fall out of my chair. Dead. Rosie’s hot breath yapping in my cold face.

What an embarrassing way to go for Michael.

Except I don’t drop. I’m fortunate to remember that with each liability, every loss, I gain a greater asset.

And I’m at peace. Finally.

Dead kittens are also dead presidents. How many times have I bloodied my net worth with a bat? Oh, many. I’ve loaned money to relatives who didn’t care if my credit went bust (never again), I worked for one of the worst penny stock chop shops and had my father purchase stock I knew would go bust (sorry dad), just to collect a commission, I have over-purchased shit I didn’t need, spent extravagantly at restaurants, too much wine. All dead money that taught me valuable living lessons.

“Hey asshole, what do you think you’re going to do with that thing?”

And as kittens were falling, I kicked red Ked in the shin. Before another word, he went down. I remember one furball jump in panic over his face, her back paws scratching deep into red Ked forehead (score).

I then slammed the iron down hard on his right shoulder.

RK lost his grip on the bat.

I wanted to hit him again.

I wanted him dead.

For all the kittens.

Past, present and future.

I grabbed his weapon and ran.

Directly to my Cousin Louis’ apartment 9 blocks away. He was NYPD. Built like Sly Stallone.

When I’m asleep and I see dead kittens, I know something big and life-changing is clawing at me.

Featured

It seems you can’t buy anything without escaping that awkward encounter just when you think your transaction is concluded.

“You can buy an extended warranty for an additional ____ dollars. Wouldn’t you like to protect your purchase?”

It feels like a wallet violation.

At least buy me dinner first.

It’s enough to keep me out of brick & mortar stores forever.

I’m not sure why I consistently feel bad saying no, and I teach financial discipline for a living. I want to feel good about what I spend money on, not guilty. It feels wrong to leave my purchase exposed to who knows what. Most of the time I politely say no and quickly move on.

Extended warranties have become a profit center for businesses, especially retailers. The peace of mind can be costly. For example, on average, an extended warranty can add an additional 10% to 25% to the purchase price of an item. There’s no doubt they’re considered a formidable driver of revenue.

When you think of the most common extended warranty, you may think of those for cars. However, they’re now offered on almost every consumer durable you buy. Recently, a good friend was offered an extended warranty for $14 on a $75 football from a national sporting goods chain. Of course he was wise enough to turn it down.

So, how do you determine when it’s smart to consider an extended warranty?

1. If replacing the item would lead to financial strain, transfer the risk.

Regardless of the cost of the product or service, an extended warranty should be considered if repairs or replacement could drain emergency cash reserves or increase your credit card debt. You don’t need to decide on an extended warranty right away. You’ll have a period of time, usually 30 days from the date of the transaction, to add coverage. Review what is covered under the standard warranty; for example, most services and goods will carry some form of protection or replacement for at least a year. If a major repair or replacement has the potential to place your household balance sheet in jeopardy, then it makes sense to transfer the risk to the manufacturer and pay for protection.

2. The bigger the purchase, the greater the consideration.

Durable goods like refrigerators, televisions, dishwashers, washers and dryers all come with standard warranties. Extended protection may not be required, as these items don’t break down frequently. However, before you say no, it’s best to investigate objective sources for repair histories for brands you’re seeking to purchase. Examine ratings on a website like www.consumerreports.org. Rarely do durables break down during the warranty period, according to Consumer Reports.

3. Forget the warranty; remember your savings account.

Instead of a warranty, consider directing money you would have spent into your emergency savings or money market account. Think of it as a cash bolster to handle repairs. In the case of a $250 warranty, add $21 a month to your budget.

4. Don’t get caught in the moment.

You may think that spending an additional 10% to 25% is no big deal after spending hundreds of dollars on something you want. Your brain will consider the purchase of an extended warranty small when compared to the greater cost of the item. As consumers we have a difficult time maintaining a rational head when it comes to additional expenditures for big purchases. Take time to step back and weigh the pros and cons. Examine the extended coverage as a stand-alone expense and the odds of using it.

5. Buy with your weaknesses in mind.

I purchase extended warranties for all portable electronics including laptops and smartphones if they cover accidental damage. I know my weaknesses; I tend to be clumsy with computers and cellphones. Make sure to examine how many instances are covered (plans will have limits) and the specifics for accident coverage. Understand your faults and use extended warranties when it protects your purchases against them.

6. How much is that item used?

Extended warranties can be useful for durable used items like automobiles and appliances. To cover your automobile, compare the costs of a dealer warranty to an independent organization like www.carchex.com, which offers several tiers of coverage (Titanium being the most inclusive). Home warranties that cover aging heating and air-conditioning systems can be worth the cost. It’s important to understand that standard maintenance is not included nor is full replacement. However, to keep appliances in operation longer and avoid the potential of frequent costly repairs, the expense of an extended warranty should be investigated.

7. Sometimes, extended warranties just don’t make sense.

Like my friend who was offered an extended warranty to protect against a flattened football, there are occasions when you’ll wonder how retailers have the nerve to sell coverage. If the purchase is $100 or less, take the chance with the manufacturer’s warranty and don’t worry about paying for an extended agreement.

In the frenzy of shopping, it’s easy to relent and say yes to aggressive salespeople.

When it comes to extended warranty purchases, don’t rush. Make the decision after reviewing the facts in the comfort of home, not in a pressured situation like checking out at a register with a line of shoppers behind you.

Featured

It took me almost as long to write this blog post; the lingering sorrow of inner-circle loss is torpor for the soul. I never get used to it no matter how many times people depart on their own or I’m motivated to head out of Dodge.

Writing about this topic resurrects mourning and at the same time, casts a different light on tenebrous memories. Surrounded by the spirits of those who are gone steels my judgment, sharpens my perspective and allows me to effectively face my own weaknesses and all-too humanity.

All human connections good or bad, add richness to life. Although the bad ones fill volumes of lesson books with razor-bladed pages. Bleed and turn, bleed more.

Healthy relationships that turn black are worse.

Unfortunately, life suspended in a cancerous relationship soup, sucks away enough energy to prevent the spirit from moving on, growing. Self-worth fades to the grated pallor of steel. Perspective flash freezes like moisture in a high mid-winter sky.

You’re heavy, stuck and falling.

But there’s only so much pain a person can take. Everybody has a trigger, a breaking point. Something happens that jolts an awakening. Could be as subtle as a recurring, inner whisper. A word. An action. Or as dramatic as a crash and burn (I’m Italian; we add drama to our rigatoni).

By the time that happens, healing has begun. Before you know it the circle will begin again. A new connection, a stronger chain, a weaker link. The leaded steamroller of life moves forward – flesh, blood and emotions in its wake.

I look up to the clouds often. I breathe in the vast universe to revitalize my small world. Let’s say I focus higher to stay closer to the ground, especially when I lose those I care about.

In the past, blinded by my ego and overtaken by the egos of others, the sky meant nothing. Looking back, I’m not sure what happened to replenish my appreciation of simple things. It’s all a big blur. Ironically, I’m grateful how I mistakenly granted admittance to my inner circle to the wrong people, organizations and feelings because they all lead me to where I am today.

The friendship that began in 1972, between T and me, has created several of my deepest pauses of reflection. Months, years, years beyond years do that.

She was my dearest crush in fourth grade. I awkwardly stumbled through many juvenile affairs of the heart then – most of them hidden behind painful shyness, a lack of self-confidence driven by sappy daydreams of holding hands walking home from school.

On Friday nights, I pounded away – creating love notes on a baby-blue & white typewriter to school girls who would never care to read them. I barely recall their names but I never forget hers.

She filtered simple, daily life experiences through a happiness prism which I found interesting at such a young age. I was an eternal fatalist. I saw the worst in everything first. I went directly to the worst-case scenario.

T was diplomatic to a fault. I was jealous of her consistently positive (occasionally cloying) perceptions of the world around her. Even when diagnosed with advanced breast cancer that upbeat perspective rarely waned. I waned. When she told me, all I had for her was silence.

“Hey, I’m not dead, yet.”

I admired her nature. She was restive, I was restless. She was a healthy distraction from my parent’s invidious marriage. Everybody wanted to be her friend.

I wouldn’t call T a frequent gambler although she had a strange passion for roulette. That’s it. Roulette. When I was 14 my parents bought me a roulette set (made by Kenner Toys, I think) for Christmas. We spun the silver disc inside that black, plastic wheel for hours. The thrill of hitting chosen numbers or black or red captured our attention.

The excitement was greater for T as she consistently played zero or double-zero. It was the deep green color that stood out in a sea of dark on a felt “table.” It felt different for her. She basked in the beauty of rare moments (like hitting the zeroes). Every time she hit it, which seemed often, I would get pissed off.

Personally, I rarely played the green zone. I think the odds of hitting zero or double-zero are like a bazillion to ten. I sought stronger probabilities.

Not T.

“I like the feeling I get when I hit double-zero.”

I so wanted a to feel like that look on T’s face when that little silver ball hit 00. Or when she beat breast cancer the first time in 1994. That smile. Post-brace face. Unforgettable. A grin born from the positive attitude which defined every part of her.

I asked her why and how she believed the impossible was possible.

She said – “because I make room for it.”

That was it.

She made room: In other words, there was a place in T’s mind and heart that created space for the impossible to be possible.

Her life was defined by double-zero.

Making room.

So in honor of T’s life and eternal life, I made it my mission to make room.

Go double-zero.

I started finding and cutting away my definition of cancer: Connections with people who drained my energy, fed off anger and frankly no longer fit into the positive life I was finally beginning to cultivate.

It’s not that they were bad; just bad for me.

I began to understand what she had been trying to tell me for decades.

And now, so should you.

Random Thoughts:

1). Double-zero creates space to breathe. It redefines the sky you’ve ignored. It allows you to fill your present with positive people and increased productivity as mental fatigue diminishes.

2). With double-zero you land less on black. There’s white space created for activities that fill in the hole. Great room to undertake those projects which fulfill you. The more you hit on 00, the faster your spin lands on inner peace. And it happens more often than it could in Roulette.

3). Double-zero is a clean slate. You’re open to new lessons; it’s a creator of second chances. The rebirth of a stronger inner circle.

4). Double-zero is not just a burning bridge. It’s using the intense light and heat from the fire to blind you from who and what you removed. It’s scorched earth. It’s the adult version of “you’re dead to me.” It’s cutting out, going cold turkey on cancerous people, situations, subjects, so you can live. No. Thrive. Never go back. Once you hit 00, take your sanity and cash out.

Double-zero isn’t forgiveness. Oh no. It’s inflamed forbearance. An internal act of defiance that transmits a clear, outward message to those who are unethical, untrustworthy and unwilling to to exhibit loyalties to love, silence, commitment and grace.

5). Someone is about to 00 you. Be ready. We have all been and will continue to be double-zeroed by others. It’s OK. Time to self-reflect. Most likely, you initiated 00, motivated the spin. Own it, burn it, move on.

Naturally, T would say I’m perceiving double-zero all wrong.

Damn my negativity.

Here are additional random thoughts T would place a stamp of approval on if she could.

A). Double-zero is making that call you’re hesitant to make. The one that makes you a target, open to hurt. Vulnerable. It’s also the one that may positively change your life forever.

B). Double-zero is a complete awareness of who you are. And the great value you bring to the table. It’s destroying what society tells you is success and re-defining it outside the cubicle, middle management and others who “just don’t get you.”

C). Double-zero fuels you to fight another day. Positive energy is contagious. You’ll attract light, warmth and peace. Over time, you’ll be addicted to 00. Odds will be in your favor.

D). Double-zero is making radical changes to your finances. It’s shrinking to grow. It’s working on taking more in and having less go out. It’s freedom from debilitating debts to pursue what you love, not what you do to pay a big mortgage.

E). Double-zero is taking a stand. Recognizing and believing in the possibilities which can come from saying no more often, pursuing interests that fulfill your soul and again, cutting deep and away from all who choke off positive flow. You’ll look up at the sky more often.

Teresa, if your energy is still here, if your afterburn is around me – I feel it.

I’m a firm believer there’s a lesson in everything. If my focus on the present is effective and I practice stillness in the manner of a Tolle master, i can learn from staring at a rock. No, seriously.

The movie “The Interview,” which doesn’t star the beloved comedy duo of the 1940’s of course, has been a tremendous center of attention due to a hacking of Sony Pictures (allegedly, I’m still not buying it,) by get this – NORTH KOREA.

Wait: A country where blind hair stylists can make a “living” is smart enough to hack SONY Pictures and threaten us?

Tell me another one.

Who gets a haircut like this?

Now everybody needs to see this film. Even people who insisted they wouldn’t sit through this mindless nonsense are doing it “for freedom,” as it now represents our “God-given” right. They’re drawing a line in the sand. Don’t get me wrong, I’m sure the flick is funny, however, it’s not like taking up arms at The Alamo.

C’mon, people.

“I shall die for Rogen & Franco,” Davy Crockett.

I give up.

I’m jumping on the bandwagon.

I love you guys!!

I’m getting messages in my head (about money) from the hacking incident. Perhaps the stylist at SuperCuts was trying to do a North Korean Coiffure mind meld on me. Hmm.

Random Thoughts:

1). Decisions about money aren’t easy. Don’t kid yourself and don’t have financial pros make it sound easy (most of them are in debt like you). Money decisions are tougher than deciding to release a dopey movie after a hack and a threat of global annihilation. Money emotions flow deeper than the ink in your paper currency. Selling stocks to take profits, saving money is a big chore (especially since your wages rival a North Korean Palace toilet scrubber since 2009,) identifying your money weaknesses and working to change them, taking losses for the stock “dogs” you’ve held for a decade.

However, to be successful, you need to buy the ticket to greater wealth whatever that means to you. It could be $10,000 or $10,000,000, or being debt-free outside of the mortgage. Take a stand for more money in your pocket. A small step is still a step and it should be celebrated. Even more so than some dumbass movie.

Can you imagine the conversation between Sony pictures CEO Michael Lynton and Obama?

“I tried calling you.”

“No you didn’t.”

…

“I would have heard the phone.”

“Well, I tried.”

“I don’t believe you.”

“I don’t believe you didn’t hear the phone.”

“Michelle was talking to me.”

“Oh, now you’re blaming your wife?”

“No, it’s just a fact.”

“And how do you not know James Franco, you live in a hole?”

“I’m busy doing president stuff.”

“Like messing up names on TV?”

“That’s not nice.”

“I’m surprised you didn’t call Sony, Sunni.”

“That’s crossing the line, movie boy.”

“We make good movies. Things blow up and shit.”

“That’s not real.”

“I just want to get this damn movie in the theatres, can I do it?”

“Which one?”

“The Interview. GOD.”

“Just for that I’m going to tell you I think Ben Aflac would be a better James Bond.”

“It’s Ben AFFLECK and NO!…Are we good here? Megan Fox wants to re-make The Sugarland Express and she’s eating all the donuts in the commissary.”

“I wouldn’t want your job.”

“No shit.”

“Merry Christmas.”

“Happy holidays.”

“Oh, now we’re going to have this fight, huh??”

No, really. The NSA has all this.

2). Prepare for surprises. So, the car broke down, you got hit on the interstate, broke a leg. Died. Your farce film got the attention of a dictator. Whatever. A key to wealth is to anticipate the unanticipated. Make sure you have 3-6 months of living expenses in an emergency cash reserve, have enough life insurance to cover the family; you signed up for long-term disability coverage at work, the beneficiaries on retirement accounts are updated, you maintain expensive durables so they last longer (when was your last oil change?). You get the picture. Can you think of other surprises, outliers, “black swans” that can devastate your finances?

3). Know your enemies. Know your financial enemies. They’re all around you. Look in the mirror. Can they become your greatest allies? For Sony, overwhelming public attention will probably generate 1,000x the ticket sales for “The Interview.”

For example, I no longer hang out with people who skip out on financial obligations. Why be around those with horrible money habits? You know them. Stay away. Can you learn from the money mistakes you’ve made, others have made? My parents were the worst with money and both died in debt with the IRS knocking on my door. I’m the opposite. I learned that disrespecting money was not part of the egg and sperm union. Bad enough I have drug and alcohol abuse, depression and lunacy in my family. I didn’t need to inherit an insane money imprint, too.

Featured

The “lovably hate-able” feline with the permanent scowl on her face due to a physical shortcoming, an underbite, has been an internet smash and much, much more.

Grumpy aka “Tardar Sauce” became a meme a couple of years ago and gained worldwide popularity by well, being grumpy and commenting a straightforward “NO” to everything (and I mean everything), in sight.

Grumpy Cat isn’t just famous worldwide; she’s also a money maker.

Grumpy has brought in an astounding $100 million in revenue from merchandise (Grumpy has her own coffee – Grumppuccino), appearances, television shows.

Why is she so popular?

Perhaps Grumpy says no to all the things we wish we could. We like her spirit – she’s got spunk!

Yes, she’s cute too.

I began to think about how Grumpy can help us improve our finances.

Can we learn from this irascible cat?

I think so.

Random Thoughts (Oh, this crap again?)

1). Understand your true money personality. Grumpy is finest when telling it “like it is.” The people who are good with money work with professionals to understand and minimize their money weaknesses and expand on their strengths. If you’re an over spender, admit it. Make small changes that can lead to big results.

2). Debt can be irritating. If total monthly debt (including mortgage) exceeds 32% of your monthly gross income, then 2015 is a good time to knock 2% off. One improvement you can make right away is to cut your holiday gift budget by 10%. The last week of December total how much you spent for gifts this year and work to come in 10% less next year. Less debt means less grumpy. Use your debit card and cash more than credit, next year.

3). Saying “no” more often can lead to wealth. We all know Grumpy’s favorite answer to everything is always a resounding “NO.” Identify the ways saying “YES” hurt you, financially. For example, say “NO” to lending money to friends and family. As the economy improves, 2015 is the year to say “YES” to a new job. How do you know what your skills command in an improving marketplace? Get your resume together; keep your eyes open for opportunities to expand your paycheck.

4). Get unimpressed with things that can separate you from your cash. It takes quite a bit to impress Grumpy Cat. She’s always seeking to be unimpressed with well, everything. Do you really need to spend on the latest technology or smartphone or can it wait? If you’re looking to make a large purchase don’t be swayed by savvy sales pitches. Wait two weeks before you buy any item that costs more than $50. See if you can live without it. You may be surprised to discover that you’re unimpressed too and don’t need to spend the cash.

5). It’s ok not to care about what your neighbor is buying. I can picture Grumpy Cat staring out the front window of her home, saying no to new cars, new furniture and other stuff she doesn’t need because one thing we know about Grumpy: She just doesn’t care. Perhaps you care too much about impressing others and it’s costing you in the form of excessive credit card interest rate fees by spending more than you earn.

So, we all can’t be worth millions like Grumpy Cat.

That’s fine.

However, the characteristics that make her appealing are contagious.

Having a little Grumpy Cat inside can make us smarter with money decisions.

Featured

In the AMC smash-hit television drama “The Walking Dead,” a group of road-hardened survivors of a zombie apocalypse seek protection from the undead (and the living who pose greater dangers than cannibalistic walking corpses.)

The fifth-season opener finds the weary characters fighting for their lives against a community of cannibals who lured them to a so-called safe zone called “Terminus.”

Handwritten signs and maps along roads and rails of rural Georgia guided the crew to a final destination, sanctuary was promised for all who arrived.

On the surface, it appeared to be a dream come true. Warm smiles, comforting words, hot food.

Underneath, Terminus was nothing as promised or perceived. Victims were lured in to be placed in rail cars like cattle and eventually slaughtered.

As there is a fine line between fact and fiction, this harrowing situation got me thinking about portfolios in retirement.

Stay with me.

Think sanctuary and think safety. A false tranquility can disarm and open the gates to great risks without your awareness. What lurks underneath your financial safe havens may eventually place your money and retirement lifestyle in jeopardy.

When making financial decisions and monitoring progress based on those decisions, you need to accept when the environment changes; make a move when safe havens turn to Terminus.

Here are five financial sanctuaries that can place a secure retirement at risk right now.

Random Thoughts:

1). Stocks. Market sanctuaries can turn unrecognizable and hostile very fast. As the stock market reaches new highs there’s an ominous feeling of complacency among investors. It’s been over three years since the S&P 500 hit an official correction or greater than a 10% drop from a previous closing high.

Consider October’s volatility a wake-up call as early in the month, the S&P 500 was rapidly moving into correction, small-company stocks and international stocks were officially there and bond yields moved lower (100% of economists predicted that bond yields would be higher by fourth quarter 2014). October concluded much different than it started – with domestic markets headed to new highs.

Underneath the surface of stocks it looks nothing like a sanctuary – Large and mega-cap indexes have outperformed, a sign of a late-stage bull market phase, small-company stocks are recovering but underperforming, which points to risk abatement. It shouldn’t be ignored how cyclical stocks like energy, or those considered beneficiaries of economic expansion, are lagging defensive stocks (think utilities, consumer staples), currently. The outperformance in defensive sectors is usually indicative of market tops and economic peaks.

The Federal Reserve’s conclusion of quantitative easing (bond purchase) program in October signifies a reduction of central bank liquidity that can increase volatility as investors and traders seek to figure out what the next tailwind for stocks is going to be.

The S&P 500 is 24.5% above its three-year moving average (36 months) -one of the widest dispersions from the moving average since fourth quarter 2007. Like a rubber band, over time market returns will stretch far above and below long-term moving averages. Although it’s impossible to know when the band will snap back to the moving average, historical downside going back to 2000 shows when the market does contract, the process is damaging. The worst contractions were 38% and 40% in 2002 and 2009, respectively.

Stocks are protection against inflation until they’re not and you’ve lost 5 years making back what you lost and inflation becomes the least of your problems. By then, you’ll feel trapped and look to re-pave the path of retirement. Whether it’s returning to work, reducing household expenses, cutting how much you withdraw from investment accounts – you’ll be prepared to do whatever’s necessary to preserve capital and slow the bleeding of investment assets.

Create an allocation to stocks that won’t cause you to panic when the bear market arrives (and it will). Don’t be overconfident. Remain vigilant and make sure to follow rules-based rebalancing where you trim gains on a periodic basis. The fourth quarter of the year is a good time to tax harvest – sell positions with capital losses in brokerage accounts to offset capital gains.

2). Index funds. It appears that index fund enthusiasts will stand strong and proudly absorb the blow as their stock sanctuary turns against them. Indexers believe that losses are temporary because in the long-term, stock markets always recover; paper losses aren’t real, they’re perceived as a bump along the path, par for the course. Like the befallen travelers who arrive at Terminus, they are not in touch with the reality of the situation they’re up against.

A sequence of anemic returns or losses in the face of periodic withdrawals can dramatically decrease the longevity of a retirement portfolio. In other words, index funds are no protection against increased drawdown and market risks. At least fees make the losses less painful (or do they?).

The battle among “passive” indexers and “active” fund advocates is growing more heated as the fourth longest bull market in history continues. I consider most of the discussion noise; the headlines are a distraction from the real perspective investors in retirement should maintain:

No matter what you hear out of most financial professionals, stock index funds are not passive. Every investment should be treated as active as soon as it is added to a portfolio.

Look beyond the attributes of stock index funds (and there are quite a few) like low fees, wide industry and company representation, tax efficiencies, and face the traps that will eventually put you in a position to fight or perish.

For example, index funds will experience the full brunt of a bear market attack (because generally they represent the market) which means you as the manager must decide the degree of loss you’re willing to accept. Staying invested is an action; reducing exposure to a losing index investment is an active decision. You are always in control, you always have a choice.

The preachers of passive seem willing to stand by and hope for the best. After all, you can’t control or predict the direction markets. That’s true. However, the amount of capital destruction you’re willing to absorb, is in your control. Consider the potential damage and recovery rate. Your back is against the wall. Are you ready to fight? If your portfolio suffers a 20% drawdown you’ll require 33.33% to break even.

Specific purchase and sell rules must be attached to each investment under consideration. Risk management never ensures against all portfolio losses, it minimizes the damage so you can come back and fight another day. It’s all about survival when it comes to the end of world (and your money).

Also, when you invest, depending on stock market valuations, is extremely relevant to future returns.

According to market historian and writer Doug Short, $1,000 invested at the peak of the market in the S&P 500 on March 24, 2000 would be worth $1,248 (adjusted for inflation) as of November 2, 2014, which equates to a 1.53% annualized real return.

Despite the mainstream marketing message (especially among indexers) designed to convince you that “time in the market” is a sanctuary, there have been many periods in history where you simply “ran out of time.” When adjusted for inflation, there are several 20-year periods in history where market returns have resulted in either low or negative outcomes.

Index funds have most likely outperformed your managed investments on the upside during this bull market; that doesn’t mean they’ll hold up better through market declines. And when you buy, based on market price/earnings, has a significant impact on future returns. At nearly 26 times earnings based on the cyclically-adjusted P/E ratio, “time in the market” may not be as beneficial over the next 20-years. It just may be a Terminus for your portfolio.

3). Retirement account withdrawals. The 4% withdrawal strategy is too generic to be effective yet it’s treated like a universal rule and preached in mass to new retirees seeking comfort after a long journey of employment. It’s as worn as the warped, wooden signs guiding The Walking Dead survivors to a place they perceive as refuge, but really is a trap.

Based on work by Sam Pittman Ph.D. and Rod Greenshields, CFA of Russell Investments, the first step to creating a retirement withdrawal that protects against longevity risk, is to calculate the ratio of current assets to the present value of forecasted retirement spending. This is called your current funded ratio. It’s a popular method pension administrators use to determine the fiscal health of their expected payouts for participants. Few advisers will consider this method and go straight to a withdrawal rate calculation that doesn’t account for an individual’s overall financial situation or household balance sheet.

The current-funded ratio method requires matching assets to liabilities to determine whether there’s adequate coverage over living expenses and inflation throughout retirement. A ratio of 100% or greater, especially during the first decade of retirement, is indicative of a greater chance of avoiding outliving a nest egg. If the present-value funded ratio is estimated to be less than 100% in ten years, adjustments to withdrawal rates or living expenses can be made before withdrawals occur. The ratio should be calculated every three years or after a sequence of below-average portfolio returns.

The strategy is called adaptive investing. Ask your financial partner about it to see if makes sense as part of your retirement planning process.

4). Company stockconcentration at the beginning of retirement. Many retirees are hesitant to manage their net worth tied up in company stock, especially in the early years of retirement. Their human capital may have left the company and enjoyed the retirement party but the emotional attachment to the stock continues strong, and is possibly dangerous.

More than 25% of liquid net worth in company stock, leaves a retiree either “the butcher or the cattle,” a philosophy the tenured residents of Terminus believe. It’s a great tailwind to net worth and retiree psychology when an overconcentration to company stock is performing well hence the butcher. When the investment is performing poorly, a vulnerability to the retirement plan arises which becomes an emotional and financial drain to the retiree and others in the household.

A formal plan should include an exit strategy for company stock within 5 years of retirement. Work down to a 10% allocation which will satisfy your attachment need but won’t derail the early years of retirement. In addition, it can allow you greater diversification potential and liquidity to meet living expenses.

5). Your broker. Someone asked me once – “Are you a broker?” I replied – “No. I’m not here to break anything, I’m here to help.” Joking aside, you may be very comfortable with your current financial relationship; consider if you have an understanding of the motives behind your adviser’s employer. Perhaps you never gave it a thought.

Ask this question: “What is your sales goal and how do I fit in?”

Yes, most in the financial services business are salespeople. Nothing wrong with it as long as your needs are met and full disclosures are made. However, maybe you’re looking for something more. I believe this question gets to the heart of a financial firm’s true motivation. Then ask: “How do you feel about your sales goals?” Are they perceived as fair by your financial partner? Ask another: “How much time will you spend with me, my planning needs and investment accounts?”

Get specifics. Ponder the answers, then consider: Are you a one-time sale or an ongoing relationship, or a bit of both?

In a recent podcast interview with self-help author and investor James Altucher, success coach Anthony Robbins shared candid insights from the experiences writing his new book, “MONEY Master the Game: 7 Simple Steps to Financial Freedom.” He explains how the financial system is designed to prosper the needs of shareholders, not investors. My take: A key is to know what questions to ask and seek answers that are simple and transparent.

“There are 312 names for brokers, today,” Tony mentions. “I’m so supportive of people that are fiduciaries, people that are trained and who are legally required to look out for you. I’m looking for people who are fiduciaries and sophisticated.”

I believe disclosure of sales goals is important. Understanding if your adviser is a fiduciary and focuses on your interests first, or a broker that has his or her employer’s objectives as a primary focus, will help you find the right long-term partner or clarify a relationship you currently enjoy (or question).

The investing climate for retirees can be scarier than fleeing from flesh-eating zombies.

Even worse are times you believe you’re safe; conditions change, you fail to acknowledge the shifting environment or realize that a financial sanctuary has turned hostile.

Featured

There’s a lot of financial temptation surrounding college students: credit card offers, the availability of student loans, the excitement of being on your own and in control of your spending money.

Freshman year can be a whirlwind of activity. But make some time for one more lesson: Form smart money habits. If you give it a little thought now, you can jumpstart a successful long-term relationship with money—and not end up crushed under a mountain of student loan or credit card debt.

The positive habits you set this year will remain with you long after you’ve earned your cap and gown. I’ve coached many students on how to be savvy with their money and maximize the financial potential of the college years. Here are seven of the most successful ideas.

Random Thoughts:

1. Assume one year’s worth of student loan debt and no more. No matter what.

The average student loan is now $33,000, which makes the class of 2014 the most indebted class in history. Do what you can to stick to one year’s worth of debt, even if it means attending a community college first or working for two years before beginning classes.

It’s radical thinking for some; you may believe this suggestion too austere. But the last thing you want is to be saddled with heavy debt burdens. The college graduate unemployment rate is currently 8.5% and the underemployment rate (new grads who are jobless, hunting for employment or working part-time) stands at 16.8%, according to a report from the Economic Policy Institute.

2. Begin a social media strategy.

And I don’t mean Instagram. Using a social media outlet such as LinkedIn, where you can connect to thought leaders, managers and prospective employers, can pay off down the road when you’re job hunting. Post articles daily—three sentences of poignant commentary reflecting your thoughts and a passion to share knowledge. Set a goal of acquiring 600 LinkedIn contacts by the time you graduate.

Not a good pic for social media.

Also use your first year as an opportunity to “clean up” personal social media accounts like Facebook, which is increasingly under scrutiny by human resources departments.

3. Watch your credit.

Take out no more than one credit card to obtain and strengthen a credit score. When I was in college, credit card providers were everywhere. I signed up for two cards and needed to work a couple of jobs to pay off the debt. Don’t do it. Based on recent legislation, credit card vendors are no longer omnipresent on campuses.

There are many attractive cards available to college students. Most likely, you’ll need a co-signer, as you won’t have full-time income. There should be a limit placed on the card, anywhere from a $500 to $1,000 maximum. The lender will most likely place strict limits on your available credit without you asking for it, but inquire anyway.

4. Consider a Roth IRA.

Believe it or not, it’s not too early to begin saving for retirement; think of all the time you have to benefit from investment appreciation. It’s OK to start small; remember, you’re trying to create a lifelong savings habit. Earnings from a part-time job are perfect for funding a Roth IRA.

For 2014, the contribution limit is $5,500, and at retirement, the money is available tax-free. Also, contributions (which are made with after-tax dollars) can be withdrawn at any time before retirement, without penalty.

5. Don’t get carried away with school spirit.

In college, I needed to own every T-shirt, sweatshirt, pen, mug—you name it, all emblazoned with the school logo. I spent hundreds of dollars on stuff I didn’t need due to my out-of-control school spirit. Limit your enthusiasm to two wearable items a year.

6. Begin a budgeting behavior.

Heck, not even an actual budget; I know how busy you’re going to be. A budget mindset is enough. Be aware of your spending habits. Understand once you run out of cash, you’re out. Do not go to the credit card for relief.

And keep a conversation going with your folks. The most successful students have parents who jointly review spending with their kids on a monthly basis. It takes less than 10 minutes to discover the expenditures with the greatest impact on cash flow.

7. Study one money tip each day or week.

It’s not that difficult. Pick any financial topic. Read one article in the business section of a local newspaper daily before you hit the books. One graduate I know read about one basic investing topic weekly at www.investor.gov. She developed a great intuitive sense about stocks, bonds, money markets—enough to ask smart questions that allowed her to maximize her 401(k) savings when she landed a job.

There’s a lot to learn as a freshman; enjoying your college experience to the fullest is important.

Just keep your money in mind, and think about how the actions you take today can either set you on the path to financial success or leave you lost in the woods.

Featured

I’ll never forget the March day in 1973 when the birthday gift from my parents – a new lime-green Schwinn 10-speed with a prism-like banana seat (complete with black double-stripe down the middle) was stolen from outside the Brooklyn neighborhood toy store – Cheap Charlie’s.

I believed I did all the right things to ensure my prized possession was secured tightly to a small tree. It was in my line of sight; no matter where I was, even checking out stacks of Hasbro Colorforms’ boxes at the back of my favorite five and dime, I could glance out the large plate glass windows and observe some part of the bike’s beautiful, clean lines.

Padlock checked twice. Pulled on the lock again, just to be sure I wasn’t fooling myself that the bike was secure.

It wasn’t enough to keep this new birthday purchase from disappearing.

Looked up from the new GI Joe Adventure Team play sets and in less than two minutes the bike was history. I bolted out the front door, looked around, up and down Avenue U as fast as my head could turn and eyes would dart.

My favorite!!

Nothing. How did the bastard get away so quickly? Oh yeah, he was on wheels.

How do I now tell my parents the expensive gift that surprised me three hours earlier was now history?

Recently, Dave Ramsey or his people (he’s big time, he has people), wrote an article that rubbed me the wrong way. Usually, I agree with the information that Dave provides however, this piece (link below) inspired the line about money linked to memory.

The Ramsey article was the catalyst to re-live a painful life episode from over forty years ago.

What happened after the incident was memorable, too. In a good way.

And I’ll never forget.

Back to Dave’s article: Used bikes, no hamsters as pets – Made me grateful to not be a kid or grandchild under the Ramsey roof.

Is there a balanced approach here so rodents can still scurry through colorful Habittrail tubes in happy homes?

I think so.

I bet Dave would hate Habittrail (too expensive).

Let’s break it down.

Here are 4 ways to save and 4 areas where Dave Ramsey is way off the mark.

Random Thoughts:

1). Go used or reused. I don’t believe our money has achieved the maximum return on thrift stores or consignment shops.

Thankfully, the stigma of shopping at a Salvation Army is dying; perhaps it’s the disappointing economic recovery where much of the middle class feels like the Great Recession never ended. Recently, my daughter and I went shopping for a winter week-long trip to New York City and found some astounding cold weather wear deals at a neighborhood place that sells gently-used teen clothing. Check out www.thethriftshopper.com for a national thrift store directory and a shoppers’ forum where all topics thrift are discussed.

2). Arts and crafts fun not boring. Crafting dollars still go a long way and what a method to engage your child in a family creative endeavor. I know it sounds old school, however some of the best returns on memory I have with my daughter is the Halloween and autumn-related crafts we did at home. We finished multiple joint projects including fall wreaths and small sentiments for family and it was short on cost, long on satisfaction. Sign up for Pinterest and investigate fall craft ideas. I was floored by the number of inexpensive DIY Halloween projects.

3). Get tricky. When I was a kid I drove my mother crazy because I was only interested in popular name brands of food. I was a sucker for television advertising. For example, I would only eat the bacon with the Indian head profile complete with full headdress, on the front of the package – can’t recall the name now. Of course, it was the most expensive and as a single parent household, mom was on a tight budget. I still remember catching her placing a less popular bacon in an old package of the brand I liked. Come to think of it, I think she did this often. I recall on occasion my Lucky Charms not having as many marshmallows. Oh the shame! She was attempting to trick me. As I age I realize I’m fine with tricking children. Buy the Frosted Flakes, keep the box and replace with the generic brand to save money. Today, less expensive brands are tough to tell apart from the premium ones. Try it.

4). Don’t miss the forest for the trees. Visit local venues first. This time of year many autumn fairs pop up at farms, places of worship and even retail parking lots. Peruse the local fair festival guides in community impact newspapers and take inexpensive journeys. It’s a great time to have children select and prepare fresh vegetables and fruits available from local vendors.

The stuff Dave Ramsey is saying is a waste may not be to you because money is not just a medium of exchange, it purchases long-term lessons and memories of places and people long gone.

So, despite what the Ramsey group says:

1). Get, or if you can, adopt a pet. The hamster or whatever suits your family. My hamster Benjy lived five years. Yes, five years! And he taught me great responsibility and love. He brought happiness and accomplishment to my life as a nine-year old. I thought he’d live forever. I taught him tricks. He chased my mother around our tiny Brooklyn walk-up (an added bonus). Dave says no Benjy. I’m sorry, this advice is wrong.

2). Say yes to movie tickets. Ok, you don’t want your six-year old to see The Equalizer, I get it. Although my father took me to The Godfather when it first hit theatres and Sonny getting converted into human Swiss cheese at the tollbooth affected me for years, there is a bonding experience between parents and children at the movies. So, you sit through Little Fluffy Bunny Finds a Carrot or whatever kids’ flick is playing. Take your children to the movies. Splurge on the overpriced candy and popcorn.

3). Yes to electronic games, too. My friend Jordan Shapiro, professor, teacher, author, contributor to Forbes and modern-day Socrates would advise you that electronic games can teach children much about life and ignite cognitive development. There are many ways to save here – plenty of gaming systems available used and in great condition, especially at pawn shops. I spent hours with my Batman coloring books; I agree crayons have a place in kids’ rooms, however, I don’t see how electronic games are a waste of money.

4). Buy the kid a new bike for gosh sakes. There’s nothing like the thrill of a new bike for a kid. All the adventures ahead – the feelings of freedom. Nothing but priceless. My head is reeling thinking about the places I went on two wheels.

Ah, so you’re wondering how I had so many great adventures when my bike was stolen the same day I got it.

Well, when I called my father from the kitchen Trimline phone crying hysterically, he immediately left work in the middle of the day (which only happened twice during my childhood), and drove me to Frank’s Schwinn Shop on East 6th Street and bought me an identical replacement.

He said it wasn’t my fault.

On his deathbed, while he lapsed in and out of a coma, I whispered in my dad’s ear, reminded him about how I was grateful for him. And that damn bike episode. How it changed my life. He was there for me through a traumatic event.

It’s unfortunate when financial types become so successful they forget what money is truly all about. It’s “eat your vegetables, don’t have fun.”

Featured

“I think we’re doing the right things with money but we feel sub-optimized.”

Twenty-four years guiding others through financial challenges, thousands of words, and oddly I experienced personal angst over this one -“sub-optimized.”

It’s rare the word arises, if at all. There was something about it that captured my ear and mind. I wondered about the obstacles that create what I call “dollar drag,” whereby the highest and best use of our money is overlooked or ignored.

Sub-optimization is an equal opportunity offender. We all are afflicted, even if our track record of handling money is better than average. There can be great intentions, even respectable core money habits and yet sub-optimization thrives because we’re human.

As in the case of this forty-something couple: Six-figure wage earners, ambitious savers who set aside 20% of income for retirement, well-funded 529 plans for young children and saddled with dangerous credit card debt levels due to a failed real estate venture.

Overall, I give them high marks when it comes to handing their money however a simple solution to reduce the high-interest debt was clearly in front of them and they couldn’t see it. They couldn’t wrap their minds around their financial condition in its entirety. There was a mental barrier between the personal and business debt even though they were the business. In other words, the burdensome interest charges affected their household net worth.

As a financial professional I realize nobody can avoid some degree of sub-optimization or dollar drag. Much of it stems from a failure in our logic called mental accounting.

See, we like to compartmentalize money: We create mental walls that prevent us from considering how each dollar can flow freely through and across various goals to the final and best destinations on our household balance sheets.

Dan Ariely, professor of behavioral economics at Duke University and New York Times best-selling author helped me understand how to position “highest and best use” in my mind. He said “every financial decision has an opportunity cost. You cannot make the best money choices in a vacuum.”

You must revolve around each decision and control where your money lands.

So, how can you make better financial choices and think full circle?

Random Thoughts:

1). Break it down and look around. Don’t perceive every financial challenge as a straight edge with a beginning and conclusion. It leads to narrow thinking and sub-optimization at the point of action. Round out your thought process. Go where you never been before. When presented with a financial decision, break down the walls, goals, compartments and picture how all your dollars can flow free from their different types of accounts and work together to achieve the greatest impact to your bottom line.

When performing this exercise with my fiscally responsible couple, we concluded that utilizing an existing home equity line of credit at less than 4% interest, to pay off the credit card with 21% interest rate, was an optimum conclusion. It was a major improvement never considered because the mental barriers were thick between business and personal accounts. Once those barriers were removed, a solution was obvious.

2). Grab every opportunity to assess the opportunity (cost). I’ve gone overboard with this one. I take lessons seriously from influences like Dan Ariely and share them with anyone who will listen. I now examine the “full circle” of every money choice. I’m obsessed with dollar drag.

During a recent evening out, before ordering at an iconic Texas barbecue place, I stepped back and thought of what else I could do with the money. Was this the “highest and best use” for my $28 bucks? I took away the walls and permitted the money to flow through other options including eating at home. I had to weigh the opportunity cost until I either returned full circle to the current choice, or stopped on a better solution. Better doesn’t always mean cheaper, either. When it comes to opportunity cost you need to input much into the calculation including what your time is worth and qualitative factors.

If anything, this type of exercise will allow you to pause before making a purchase and create awareness about other options that may bring greater satisfaction and value.

And yes, I went for the pork ribs and fixings.

3). Think rooftop, not basement. When you bust down the walls between dollars, you begin to think bigger (and smarter). You’re up on the roof looking out and over the landscape of your finances. You begin to see how fungible money is.

Most of the time, we rummage in the basement where it’s dark and narrow because of the laser-focus on the problem. Unfortunately, the longer we concentrate, the less we observe lucrative options hiding in plain sight. That’s why financial decisions should begin from a holistic perspective (roof) and then narrowed down to the basement or specific issues at hand.

For example, when gasoline prices were shy of 4 dollars a gallon, I was inundated with inquiries about trading in paid-off automobiles for new gas-efficient options. In other words, I was being asked whether spending $32,000 was worth the saving of $600 a year at the gas pump. The numbers didn’t work out advantageously. Once you consider the opportunity cost of spending five figures, well, you’re on the roof and seeing things from a clearer perspective. From there, dollars may flow to higher uses or in these cases, not flow inefficiently to paying additional debt from automobile loans.

4). Hire a navigator. The navigators are out there. The best financial advisers are sensitive to their own emotional biases and can help others navigate through theirs. There’s a synergy and greater satisfaction when a financial partner can help reduce barriers and encourage breakthrough or “a-ha” moments. You always appreciate the highest and best use of a navigator. Ostensibly, your net worth should be affected positively, too.

5). Live your retirement plan optimization. The majority of people I meet have a retirement strategy. It exists in their heads but not in writing. Those who have a formal, written plan tend to weigh opportunity costs or are at the least, sensitive to the implications of their financial choices. Since plans take into account your entire financial picture they direct you to focus on the big picture. Eventually, emotional walls fall, and you can easily think full circle and assess how every decision made today affects your retirement start date.

6). How sub-optimized are your relationships? As you grow as an individual, a force, you must consistently optimize your relationships to determine who is worthy of your inner circle. All the others must be cast away. They’re weights tied to your spirit and they will pull you down to shitsville. Surround yourself with those who are smarter than you (not just book smart, but also will expose you to learning experiences outside your comfort zones). Also, people who make you laugh inspire optimization.

Oh..

Now that you’re in the mood to bust boundaries around money, keep in mind that any account can be a retirement account. Just because it’s not held with your employer or doesn’t have “IRA” in the title, doesn’t mean the dollars you save aren’t applicable to retirement. Society, to a degree, has encouraged mental accounting by sanctioning retirement vs. non-retirement accounts.

As part of your change in thinking, consider all money in one pool. You decide how it flows to its most honorable (and hopefully lucrative) conclusion.

Sub-optimization optimized my thinking; I hope it’s sparked a new perspective for you.

Released in the early 70’s to revitalize the brand, (then owned by Nabisco the cookie company interestingly enough), Aurora released the scantily clad, barefooted “Victim” model kit complete with outfit of a hottie hitchhiker right out of a Grindhouse flick.

It was love at first snap.

Bless her plastic cutoffs.

I owned two of the kits.

Don’t ask.

Then out came Vampirella complete with ample bosom and sharp teeth that dealt the final blow to my childhood.

A busty female vampire in an outfit or what was left of one; cut way too provocative for the audience it was designed for. How I wished she could bite me with those plastic fangs (or at least rub against me in that outfit). Well, she did rub against me in that outfit. I don’t recall any objections although she did come apart at the seams at times. Glue was definitely stronger then *snap*.

I’m ashamed to recall how many times I ran my hands over her fine tan plastic (I never used paint as suggested by the instructions). Stopping at her breasts. Creating ringlets. Gently with an index finger. Giggling. Always giggling.

Me. Not her.

Her artwork was A cup. The actual kit? D cup. Definitely.

Let’s just say parents (pent-up moms; dads were too busy with spinning index fingers), were enraged with this line of model kits.

Didn’t help how the box illustrations were provocative artsy, plastered with “Rated X…for Excitement,” printed on the tops.

The “Victim” model was an accessory of sorts, well she was a victim. Slim enough to fit into scene kits named “The Pain Parlor” and “The Hanging Cage.” Guess it’s understandable why the National Organization for Women were in an uproar and stormed Nabisco headquarters.

The cage. My victims favored the cage.

It’s tough to swallow but these kits were responsible for the final blow to the Aurora empire. Concerned parents’ groups in the early 70’s deemed these model kits and playsets too sinister and depraved for their sensitive, impressionable youth.

Worried moms and dads (oh please, dads were forced), mounted an assault on all the popular monster toys and comics of the day, urging boycotts and letter writing campaigns.

In November 1971, the kits were shipped for sale in Canada (yet another reason to admire Canada, I guess), and the original molds destroyed.

The entire creative team for Aurora was fired. Heartbreaking.

I would trek miles to find these kits. Several stores in Brooklyn still carried them after they were discontinued. I remember one dimly-lit five & dime outlet across town with the balls to still sell them. Cost was 2-4 bucks.Today at auction I’ve seen pristine kits, still in shrink wrap going for up to $800. Talk about an investment!

The gold old days of voluptuous plastic are gone. Well, not really. There is some around. It’s cost prohibitive but replace may your love interest. Add it up. Should be cheaper than a significant other.

I confess. My mother made my entire (10) G.I. Joe Adventure Team disappear in 1975 when she discovered a couple of naked Barbies in the map room of the G.I. Joe Headquarters.

What a shame. Another fortune lost.

It was all innocent. Really!

The map room was comfy.

Random Thoughts:

1). Cherish your memories. Remember the joy of your personal history. It made you who you are. It placed you where you are right now. Cherish the plastic chains of your past yet know when they’ve overstayed their welcome. Your past has no place in your current. Unless you fit nicely into a Vampirella outfit. In that case, call me.

2). Know when it’s time to destroy the molds. Of who you were. You’re not there anymore. I believe I’m smarter and better than the day before. Know when it’s time to fire the creative team or the inner and outer voices that stir your ego, feed you stories that don’t suit your life path and tell you how you must follow rules you didn’t create.

3). Plastic toys can still be fun. OK, read into this the way you like. I control my credit cards. I use and abuse them for everything. My new plastic “victims.” I pay them off monthly and take the reward points. I also use the itemized statements to monitor my spending habits and seek areas of improvement. Like when I cut $20,000 in annual restaurant spending down to $3,000.

Plastic can be your friend. It can do all kinds of stuff, even vibrate from what I hear.

Discover how the enjoyment over your present is much better than what thrilled you in the past.

I can admire a “Victim” Monster Scenes Kit in original packaging without regret over where I’ve been.

It keeps me out of the cages and pain parlors created by those who don’t have my best interests at heart.

Featured

He resembled Precious except for the frantic flop-mop of black hair,shiny from oil; parted in the middle like demon Alfalfa. He had a mouth full of broken teeth, too. His parents never bothered to fix them. Maybe they did and gave up.

What a special human (I think) gift to Brooklyn.

His eyes bulged like snakes were pushing them, trying to pop them and escape from behind the sockets.

He loved to take big shits in a graveyard of broken glass and construction debris somewhere under the elevated subway line cordoned by shaky fencing in one of the gray-shaded lots between Coney Island and home.

Never failed. He’d beckon me over in a frenzy, pointing feverishly at a steaming pile of fresh Raymains as I called them.

I looked. Every time.

Oddly, I admired him; I never had the guts to crap in public. Literally, my bowels would freeze up. I attempted it once. My white Fruit Of The Looms paid the price.

I poked hot and steamy with a shard of glass. Once.Twice. Hell, I lost count.

He giggled every time. Must have been my face. Disgust, curiosity. More pokes, more high-pitched giggles from deep in the throat. I must have tickled a snake into a slither.

Raymond always did odd things, some actions bordered on frightening.

I was afraid to be his friend, more afraid of not.

Out of nowhere, a July afternoon, he dangled his penis in daylight at a 1975 Ford Maverick -stop sign. Avenue S. He just decided to whip it out. I witnessed the incident.

The guy behind the wheel didn’t appreciate the gesture and quickly bolted from the driver’s seat, his orange and white-trimmed Ford slow rolled into the busy intersection. Passenger girlfriend still in shock from floppy private parts at high noon.

The burly dude was faster than I imagined, like his beer belly was fuel storage. Must have been the adrenaline rush.

He stayed on Raymond’s heels all the way through an empty public schoolyard. Public School 215, to be specific. The stumpy guy was quick, but petered out (no pun intended) as Raymond picked up the pace and sprinted like a ghoulish gazelle on feet too big for his wiry frame.

As I observed the drama unfold and Raymond run erratically around the yard like a frightened rat in a cage, I could hear his vocal screech ebb and flow as the husky driver eventually slowed, stopped and fell over from exhaustion. Maybe it was that freak-ass loud laugh that sucked the energy from Mr. Maverick.

“Serpents! Snakes in basement, snakes on the roof!” Raymond bellowed.

He would regularly blurt a whisper of choppy words and sentences, observations about how snakes and serpents good or bad, guided his motivations. Based on how much he masturbated in public, I wondered if the basement reptile was his man parts.

People in the neighborhood said he was crazy. I thought maybe, just maybe, he was the sane one.

Perhaps there is something to these snakes that slide in-between thoughts and push us to enlightenment or frighten us to conform. If there are too many, they can make you insane enough to defecate in abandoned city spaces.

If I closed my eyes in stillness, I heard the snakes in my own head.

I think about you often, Raymond.

This is for you.

My long lost creature teacher.

Random Thoughts:

1). How many snakes will drive you to insanity? In my gut I felt Raymond wrestled with (or not) at least ten. What is the “right” number? How many can a person handle? Love, genius, passion, apathy, lunacy? The paths created by society’s handlers and the actions that push you to test and ostensibly thrive outside rules others have set for you feel like at first, demon snakes. But they’re not. They live to scare you out of complacency. They live to set you free from the cage; you resist until one attacks, causes enough pain. I guess if I must slither in and out of what life is and not what I want it to be, several serpents will be sacrificed to the mental altar of mediocrity. If I remain aware of the deceptive snakes of status quo, reptiles are welcomed as long as they play nice, submit. I’m extremely sensitive to trimming the herd.

2). Learn to detect and handle your own breed of serpents. Lose control for long and you’re shitting in inappropriate places. Definitely a snake gone awry. Tame what frightens you. Are your fears real or imagined? Decide which snake you’re going to breed – fear or fact. You must work at it every day. Thin the herd. You kill or they feed. Your decision. Some people believe they must scare themselves out of great lives, great loves and great thinking. Don’t be one of them. Everything changes, like the path of a snake. Learn to detect important crossroads and intersects.

3). Non-poisonous snakes are dangerous, too. The snakes of the gatekeepers act like they’re looking out for you but they are expert deceivers. Although there is protection – as long as you follow their instructions, swallow their lies, promote their false stories, the non-poisonous can turn lethal real quick. I experienced it. I’m ashamed and angered about how much poisonous corporate culture I ingested, what I lost personally, due to forked tongues. Where are the non-poisonous snakes that can turn on you once you understand their true motivations?

4). Have faith that the good serpents will protect you. I’ve done a good job with my good serpent/lethal serpent ratio. When I’m feeling insecure, fearful, I galvanize the most powerful of them; they prey on the weaker brethren when I instruct them now. Understand the difference between the good and bad ones. Serpents that compel you to shit outside or on the toilet (and wipe efficiently) look the same. Eventually, after a few bites, you’ll just know the difference.

5). Treat debt like prey. You can make a snake pit full of money and still be broke. Excessive debt is like the fat rat in a den of Ball Pythons. Eventually, you’re surrounded, overwhelmed and swallowed. Ultimate empowerment comes from inflow greater than your outflow. Then when evil serpents pay a visit, you have enough surplus to exterminate them. You’ll also have enough money to provide the good snakes what they feed on – positive change, self improvement, travel. Hell, or do what my friend Kelly did – Pick up and pursue your dream in a new environment.

6). Let your serpents roam. The rodents live among us: They thrive on narcissism and negative energy.They are the takers. Allow your serpents to feast brazenly on them. Only then will you prosper. No longer will your view be blocked. The serpents of love, discovery, unbridled passion will breed and flourish.

Featured

July 10, 1877: How can there be so much blood? John knew what he was seeing wasn’t good. Blood this dark meant something serious; something arterial hit by the bul­let. Heavy twill pants went saturated so quickly they might as well have been made of cheap linen.

A shaken, ashen-faced 30 year-old John Hardeman tried to remain calm.

He falsely assured his brother all would be well as William Hardeman bled to death in the gravel of a red-dust main street. The ground was so parched William’s life liquid didn’t soak in, it pooled in a warm bubble underneath him.

Nowhere to go, it rose and spread, beaded over the grit – light red, then dark to black. Like Texas crude rising from below.

“Get that dyin’ man out of the street, it’s bad for business!” bellowed “Rowdy Joe” Lowe who operated the only gambling house in town…

Allegedly the shooting was over an unpaid gambling debt. Justice swiftly rendered.

For decades the dusty mecca of Luling, Texas (pop. 5,500) has celebrated all that is cold, wet and sweet through its annual watermelon thump. Once coined the “toughest town in Texas,” Luling was initially known as a center-point rest-and-rambunctious stop for cattle drivers along the Chisholm Trail. It’s sort of odd it would become associated with anything as sweet and refreshing as ripe watermelon but so it goes in Texas.

An acrid odor arises from oil pumps, punches the stillness, (I’m told it’s gas) and irritates the nostrils. The faint aroma of metal grind on metal as the railroad, along with an ear-piercing whistle, rolls through frequently and mixes with the fragrance of barbecue that rises and suspends in smoke-filled gossamer ribbons.

Luling’s era as a hub for heavy commerce and cattle are long gone. Yet warm shadows of the past embrace the inevitable invasion of the present. They cast vigilant shade. Progress is allowable only to a point, never enough to shut out the light of what was.

Current residents are far from back woods. There’s a clothesline here and there with large overalls hanging, I’ll give you that.

Most dwellings are not much to view. They’re worn from constant heat. Need work. Sun-faded remnants of outdoor plastic toys litter front and back yards.

A tattered couch on a porch catches the eye.

There exist old majestic structures that gleam white and border the center of town beautifully preserved. The history in the walls is nurtured. Artistry lives in the wood, expansive porches, columns that guard grand entrances halls.

Ordinary episodes of daily life strain through a time warp – polite words travel along bands of narrow streets within this close-knit town webbed to a rail line. When trains run, a round sound of train whistle sepia tones the sky. Clouds halt above. The current year fades in decade drips.

The signs of enlightenment are there for those open enough to accept them. The teachings carry strong on the smell of industry, the local smoked cuisine and in the sweetness of carnival caramel corn. White-hot brick walls and penetrating sunlight can’t stop history from fading. And for this I’m grateful.

True: Folks are comfortable with rusted memories of accomplishments long ago although they seem fine to allow the past to co-exist. In fact they relish and celebrate the idea, especially when the thump raises Luling’s map dot even if it’s for only for a few days.

Otherwise, not much happens. And I’m being polite. I mean nothing absolutely happens here. Just living and dying in a small town. Naturally, football pride (Friday Night Lights) is strong like most places in Texas. Oil and gas exploration is experiencing a renaissance in this area, too.

A slight claim to fame was the 2006 movie “The Return,” a horror/supernatural thriller starring Sarah Michelle Gellar who portrayed a young woman haunted by psychic visions of a murder that happened years back in the character’s hometown of, that’s right, Luling.

Then there’s the watermelon. Lots of watermelon.

Every year, homage is paid to a produce-induced vision of a school principal from way back. Another world in fact: 1954.

Carnival festivities and watermelon-themed events like seed spitting (not as gross as it sounds) are bathed in ropes of colorful party lights for four fun-filled days.

A warm breeze carries a pungent wave from a teeter-tottering arm of an aged oil pump and bounces it across and through what seems like endless strings of tiny white lights. The lights flicker so much I can’t tell whether watermelon is a fruit or a vegetable in the ebb and flow of reflection. This is a big controversy on the internet by the way. I stick with watermelon as a fruit. I don’t like my vegetables sweet. That’s how I roll.

Activities kick off on a Thursday evening with the crowning of “Watermelon Queen,” selected from a small group of junior-high and high-school young ladies. Sponsored by community services and local businesses, the girls, dressed in formal best, gather at an outdoor aged wooden structure called the “pavilion” and sit nervously awaiting the judg­es’ decision. The “fresh-picked” Queen holds the primary responsibility of representing the town at upcoming statewide events and local school and business functions until the next thump and new royalty is crowned.

For six consecutive years, my daughter and I have honored the tradition and at the same time, created a strange one of our own by sweltering in the Texas humidity.

Partaking with gusto in all that small town hospitality has to offer.

For temporary relief at least, watermelon is plentiful. Icy-cold that stings the gums (two slices two dollars). Miles of funnel cake and food specialties are savory high-caloric backups.

I’ve visited at least a dozen times (for savory barbeque served on butcher-brown paper at the iconic City Market), and came to know business owners and residents at least on cordial speaking terms.

I’m viewed as sort of odd man out and been laughingly called a Yankee a time or two, however hospitality runs strong in these parts and no matter how out of place I appear, I am treated as warmly as a native (after light jabbing).

A fascination with Texas history rolled me down Interstate 10. I have remained intrigued as those I encounter manage to survive, even thrive on modest financial resources (a per-capita income of roughly $13,000 a year).

I‘ve been a respectful observer. Under the radar. A speck on painted oil pump.

My window of observation is usually limited due to the July blast-furnace Texas heat. Surprisingly weather conditions were different this year. The late afternoon brought with it a front of cooler air which pushed out humidity, broke the heat and exposed a pinkish-blue Technicolor sky against a busy Ferris wheel dripping in colorful carnival lights.

Over the years, I’ve compiled notes of the best of lessons from the residents of Luling.

Here are seven of the most memorable random thoughts:

“I don’t eat the whole chicken all at once, just a piece at a time.” You can’t make this stuff up! Those who seek immediate satisfaction or look to get rich quick are go­ing to suffer from incredible financial indigestion or worse. Growing wealth isn’t magic – it begins with a financial awareness of cash flow, consistently spending less than household income, managing debt and a saving and/or investment plan for specific life benchmarks like retirement.

Many feel the tasks too overwhelming. Why bother?

Well, listen to Luling: Take a baby step: If you’re not saving, start. Even if it’s an additional $50 a month to bolster an emergency cash stash. Increase your 401(k) or retirement plan contributions by one percent next week. Apply as much as you can to get credit card bills paid off quickly. Take the action now. Worry about the repercussions on the budget later. Take a step forward. Find a way to make it work.

“Don’t owe nothin’ to nobody.” Appears those with smarts in Caldwell County, mostly the “senior folk,” abhor debt. The gentlemen who blurted this insight at me had a mouth full of ribs and a face devoid of several teeth (meat falls right off the bone at City Market).

Wisdom happens even if those providing it are all gums. U.S. households are slowly getting their balance sheets in order and that requires reducing debt and work­ing to aggressively increase savings. Be proud of the eventual independence that comes from becoming debt free.cipal, inter­est, taxes and insurance doesn’t exceed 25 percent of gross monthly income. Stan­dard rule of thumb is 28 percent; my advice is to come in below as the rule is antiquated like many of the downtown Luling facades. I have been disciplined enough to follow a “20 percent of gross” mantra. But then I’ve never perceived a house as an investment – just a place to hang the hat.

Side note: City Market only takes cash – no credit cards, no checks. You can enjoy melt-in-your-mouth brisket without taking on additional debt. The establishment is eternally smoky and there’s no air conditioning. Spicy sauce makes the experience hotter. Don’t worry. As the sweating kicks in you feel cooler.

“You can fool yourself but the pigs’ll still laugh at you.” I needed to think outside the box with this one. Emotion is the greatest enemy of investment and financial suc­cess. Individual investors are constantly plagued by overconfidence (you didn’t beat the market, I’m sorry-you didn’t). You consistently sell low and buy high, hold on to losers too long, sell winners prematurely and create trends in your head where none exist. Understand your limitations and emotional biases and you’ll be much more successful. You’ll deny this at first.

Most important with the 200% run-up in markets since March 2009, I’m starting to observe (finally) signs of recency bias among retail investors as they project their most recent stock market experience into the future. In other words, we are growing too comfortable with lofty stock market returns and the unusual absence of corrections and that’s as dangerous as Luling’s Main Street in 1877.

Your performance should be gauged against specific goals you have for money, not an index like the S&P 500. Your performance should be compared on an absolute basis, to the return you require to hit the gusher (Texas talk). I consider it “financial life benchmarking.”

Financial life benchmarks are those specific milestones you create, accomplish and check off. They move you ahead, keep you focused and ostensibly bolster your household balance sheet.

There’s a point, a law of diminishing returns (or financial wheel-spinning) where you’ll take on more risk and not receive a commensurate amount of return. The problem is a bell doesn’t ring or an alarm doesn’t go off once you approach or breach the danger zone whereby additional risk is not complimentary but greatly detrimental to future results. When you’re focused on beating the market, you will lose sight of the risk and wind up like poor William Hardeman as your net worth bleeds away.

FLB helps you understand clearly the returns you require to get to where you want to be – It’s about you, not a market index. It’s your life, your attitude towards money, what’s important to you about having the money to meet lifestyle goals all wrapped together in a functional action plan. It’s your town and the roads are unlike any others.

By the way, those I’ve encountered with impressive success in markets rarely brag about it. Look in the mirror and understand how the stock market will humble you today. Always perceive markets as ornery as “Rowdy Joe.”

“The heat won’t kill ya until it does.” I needed to sit a spell after hearing this Lone Star nugget of wisdom. What the heck did it mean? Then I realized-in Texas you respect the heat and understand the danger of oppressive weather conditions on your health. Ignore the heat and deal with the consequences. The famous quote by Albert Einstein comes to mind: “Insanity: Doing the same thing over and over again and expecting different results.”

If your current relationship with money or yourself is subpar, it isn’t going to change it­self. Overextending on credit, not saving for retirement or at least forming a strategy, a lack of an emergency cash buffer, using spending as a substitute for happiness, not taking care of your body physically/mentally, failing to continue to learn will burn you to a crisp.

Start a personally heated change wave. It doesn’t need to be huge. A habit takes repetition to become second nature. Soon a healthier and wealthier routine will be yours but it doesn’t happen by accident.

“Hay is gold.” An unprecedented drought and elongated period of record heat, and hay becomes a valuable commodity in Texas. All of life comes down to supply and demand. Right now there’s a greater supply of you and little demand. Just look inside the unemployment rate or employment numbers. There’s a surplus of labor and lots of slack.

What makes you unique?

It’s a tough reality. The skills you had, or even the career you thrived on have a greater chance of being sour permanently since the Great Recession occurred. That doesn’t mean you don’t possess several core strengths to expand upon. Confidence in your personal skills and abilities has been shaken more than any other time in history outside the Great Depression. Take control.

“I’ll take small quality over big a big stack of nothin’.” I admit it. I overheard this one. Yes, everything is bigger in Texas. Texans also respect and appreciate quality and pureness of heart over size. It’s a good time to go smaller. How much you need anyway?

Luling is home to an interesting business: Tiny Texas Houses. Each house is made of 99 percent salvaged materials. No structure is bigger than 12’ x 28’ with a loft. How much square footage you need? Get yourself two dogs (they’re loyal), two acres and possibly a person to keep you company once in a while and you’ll be styling.

I’ve been preachin’ this two dogs, two-acre sentiment for years because it seems right to me. Feels like true independence. Peace of mind comes from taking in more than you need to meet expenses. I’ve been told that too, in Luling. I’ve seen it.

“The past has a place but shouldn’t interfere too much with the present.” The new owners and staff of the Francis-Ainsworth Bed & Breakfast are in the process of restoring the historic structure for a new generation of guests to enjoy. I feel history tap me on the shoulder here. It’s a presence which lightly beckons, lowers its head in deference as I enter, and invites me to never forget to respect what’s come before me. I’m merely passing through.

With that I learn how I must deeply preserve those in my inner circle, swiftly cut out negative presences, continue my understanding of the human condition and work to assist, respect my teachers.

In August, 1922 another shaken, ashen-faced man watched as black bled into dirt. The flow of the liquid was so strong it cut a trail into sunbaked earth for over a mile.

The discovery of oil by Edgar B. Davis changed Luling’s landscape dramatically in 1922. He mortgaged everything he owned and was about to throw in the towel when Rafael Rios #1 became a gusher. Edgar Davis’ creation of the Luling Oil Field promoted rapid growth as the town population grew to 6,000 and 100 new businesses were created by 1928.

At its peak, the oil field produced 11,134,000 barrels.

One 100 degree-plus day in 2011 as I stood outside of Blake’s Restaurant on Main Street, a hot breeze overtook me. I could barely breathe. With it came the odor from nearby operating oil pump jacks. I crinkled my nose – who wouldn’t?

An elderly local walking by tipped his white cowboy hat at me, stopped and politely said:

Featured

We’ve all heard the horror stories of couples suffering in a toxic money mix.

Married or unmarried – it doesn’t matter.

Financial harmony is crucial to a couple’s long-term synergy with money.

From my experience, the ones with cohesive financial strategies are the most successful.

Over the years, I’ve documented several unfavorable money behaviors exhibited by couples. In greater than 95% of the cases observed, the relationships ended on bad terms.

The top six:

1). They disrespect each other’s credit. One of the worst fiscal violations I’ve witnessed is how credit is misused in a relationship which causes a party’s credit score to falter as credit card balances are increased leaving the trusting partner in a relationship, on the hook for the bills. I have seen otherwise smart individuals allow a partner to use their credit and turn a blind eye to misuse. Until it’s too late and they’re in a hole financially – spending years paying back big debts.

Rule: Never permit a loved one, including a marriage partner to take advantage of your available credit and perhaps ruin your credit score, whether it’s intentional or not. It’s not a matter of trust; it’s a matter of control. You must be the steadfast gatekeeper of your available credit and scores. If it’s true love, the other party will appreciate your discipline. If you do share credit, make sure to carefully examine all credit card statements and access credit reports annually for free at www.annualcreditreport.com.

2). Lack of communication. Especially when it comes to life-changing financial decisions or big purchases. It’s ok if you fail to mention lunches or an occasional discretionary purchase. When it comes to large expenditures like expensive durable goods or making big decisions that may affect both parties like a new job offer or decision related to retirement, it’s best to share all relevant information with a partner or spouse before moving forward. Even if it’s a wise decision, the action of sharing and receiving feedback is crucial to the health of a relationship you cherish.

Rule: Before financial decisions bigger than $100 bucks are executed, think twice and open up beforehand. Take to heart information shared through open dialogue. Get an objective third party involved in the mix to listen to both sides and weigh the evidence.

3). Little consideration for the blueprint. Deep in you is a money DNA. Since a small child, you have handled money based on experiences. You also learned from observation and communication – parents, grandparents. If your money mindset conflicts with a partner, that’s ok. There are methods of compromise. If your money mindset is disregarded or even ridiculed, then it’s time to question the viability of the relationship.

Rule: Whether you’re a deep saver or big spender, be receptive to the manner you’re treated if your partner disagrees with your money DNA. The couples who endure are the ones who find a working medium or a hybrid DNA strategy. The key is to watch for language of judgment and money behavior that jeopardizes the current situation or the health of the future household balance sheet.

4). Multiple bailouts are acceptable. You know the type. They mess up with money and then seek others to bail them out like parents or partners. Then the same reckless behaviors are repeated and bailouts continued. It’s bad news. Rarely do I observe couples last long traveling this endless loop. Usually, an observant partner is suckered in more than once and leaves the relationship financially and emotionally fragile.

Rule: A one-time bailout, depending on your financial situation is acceptable. No excuses or money provided when similar mishaps are repeated. It’s a hard rule and it will save you financially. Perhaps you leave with your self-esteem intact, too.

5). Financial success is resented. According to a Pew Research Study from May 2013, a record 40% of all households with children under the age of 18 include mothers who are either the sole or primary source of income for the family. To keep it in perspective, the share was 11% in 1960.

Since the financial crisis I have witnessed women taking additional charge of their finances (and the families) and men in the relationship growing increasingly resentful.

I have worked with couples where women have become increasingly unhappy when partners have taken on additional work responsibilities and time away from their personal activities.

Resentment is poison to any close relationship and detrimental to elevating finances to the next level.

Rule: A resentful attitude over a partner’s success requires thorough and truthful self-reflection. Instead of wasting precious energy on negative emotions, objectively witness and attempt to find ways to mirror the good habits of a successful partner. Ask for guidance. Be open to criticism if it’s positive and leads to self-improvement.

6). Fractured retirement planning and savings goals. Couples who are hesitant to blend retirement goals and fail to align their efforts to meet jointly-created goals, ostensibly fall behind or at the least, miss out on the synergies that accompany working together toward a comfortable retirement.

Rule: Retirement planning is a partnership objective. Coordinating retirement account salary deferrals, examining company retirement plan allocations as one and periodically reviewing progress together must be mandatory for couples who are serious about the quality of their retirement years.

Random Thought:

Couples can be a galvanized force to greater wealth or rapidly deteriorate their combined net worth.

Featured

When you consider barriers in your mind and heart for the purpose of protection from the illusory risk of being hurt or disappointed, you eventually arrive at a crossroad. When regret over the moments you forgot to live intersect with the art you failed to create, the souls you missed to touch.

Something inside slams the life out of you. Your face is smashed against the stones.

In time, walls absorb warmth and dehydrates the health of human vibrancy and a passion for discovery, the willingness to learn. It sucks the all color out of your elevation, dulls the tastes in the mouth; the art you once created withers into gray muck.

And.

Apathy crowds out empathy with each new brick.

The process occurs in great stealth, like absorbed vapor; slowly the walls drain life’s air from who you were before the shit bag of who you are (but it’s not who you really are.)

Walls destroy iterations of all that’s noble in you. The “you” back to childhood – when you were a sponge and innocence opened doors to enrichment (and a few worthy bruises).

You’re.

Eyes wide closed. Blind in the dark. Blinder in the bright. Full steam forward, head down, guarded.

Numb.

Dumb.

Void of passion.

.

Oh, the hours, the years, the efforts to create what you believe keeps you safe.

Until events outside your control (and those subconscious within).

Rock the foundation.

And reveals the wall for what it is.

Enemy.

The first crack in the wall rocked me good. I was sad to realize – I was living a sham. Lifeless corporate job where my sense of well-being was uprooted by assholes in ivory towers almost on a daily basis, an unhealthy infatuation with people I wouldn’t give a second glance at today, and too much alcohol to dull the bullshit, made it palatable.

I was running from pain. At least I thought.

Part of the agony came from the growing realization that I was needing to break free, get my life back, to survive and thrive for whatever years were left.

I helped myself as much as possible with mental stamina I absorbed from the energy of others; people no longer in my life were efficient wall destroyers, too. I’m thankful they were there to take pick axes to it.

However, as I live in peace, I’m grateful every day they’re gone. Ground to dust and cast to the winds of the past.

They no longer effect me.

All the precious energy wasted building and reinforcing structures that had one mission – to live and destroy the builder.

I’m still not sure about the genesis of the angst. Why or when do people decide to chip away at their wall beasts? The chisels, the motivations are different for everybody.

A shock perhaps (for me it was).

A morbid curiosity of what life would be like outside high walls.

The right teachers come along, awaken you, assist with the deconstruction?

Yes.

How much of yourself does it take to turn massive fortresses to stone and then grind them to dust?

How many times must you crush who you were to form a greater self that awakens in the present?

How much of yourself will you lose in the process?

Are you up for the job?

Every chip is a strand of DNA, attached to a part of who you were. And the rubble keeps piling up. Unsettling grit underfoot. The foundation is no longer smooth; the road is covered in rough-busted remnants.

You are troubled by the feel of gravel underneath.

And ahead.

An unsteady path wobbles your resolve.

But you must not stop.

Because to look back is to choke on the dust of vulnerability. Of failure.

It’s a fucking wonder there’s energy left for anything else you know – like working, or checking your e-mail.

As you.

Cut off the oxygen, sever rotted death lines, birth new life threads, and ultimately – a healthier way of being emerges.

A cleaner intake. An enlightened outtake.

Dying along the way is the ticket to a stimulating ride. Sucks.

But that’s the way it is.

Unfortunately, not many are up for the toll it takes on the body, or the weight of the job on the mind. Too immature or self-centered – they’re missing the emotional quota to get smashed by their own stones, pained by the gravel they don’t have enough guts to stumble over, too.

They’re too full of hubris, cowardice to breathe in the dust and puke it up.

Also, I admit – it’s difficult.

I was thinking:

Where does it say that everybody you encounter needs to tackle this fucking monster wall to get to the deep of you? You crush anyone who goes near it yet you seek someone to crack the code, find the weak spot? Confusing and exhausting.

What forms this barrier to entry?

How high does it go?

Who created this rule?

My grandmother, when something was beyond her comprehension (or outside her little Brooklyn neighborhood), would say to me:

When the dust settles (and for me it took roughly two years), you’ll be thankful for the project. As the wall comes down, second chances emerge.

Relish each tragedy, every revelation; appreciate the loves won and lost. Your choice and challenge is to either forge the masonry or knock out a stone, look through the hole and observe the beauty beyond the barrier.

Consider these ten ways to grind your way to a better life.

Random Thoughts:

1). Tear down walls, erect sails. Create a structure that’s light and captures the air of your passions and creativity. Sure, even an ill wind may throw you off course a bit, however, unlike a wall, a sail will not allow you to stagnate. It won’t close you in. A great challenge is to navigate your course and learn when to expand or contract your sails.

2). Replace heavy bricks. Replace impenetrable bricks of sorrow and regret with a willingness to be open and pliable. Anything that will allow you to see farther than you have before and feed your resiliency is worth the possible risk of hurt. Living within the boundaries of the past to guide present actions will suffocate your rebuilt childlike quality of promise.

3).Take out assholes. Then work diligently to discover and value teachers who will fill mind holes. As walls are razed, it provides openings, even through the dust, for mentors to enter space once occupied by fear and denial. Once your teachers begin to invade, dangerous structures become less menacing. They weaken and crumble at a faster pace than you can accomplish alone.

4). Take risks of the heart and say “fuck it” often. Now that walls are falling, your heart is out there. No protection. Exposing a vulnerable self to others is throwing yourself in front of an emotional bullet; a pure act of love. Consider the act a peace offering to those in your world and ones you seek in your space. It’s not going to feel warm and fuzzy at first.

To evolve in an age of soullessness will never feel right, initially. What ostensibly makes you at ease will always take great courage.

If you make an error in judgment (and you will), consider how resilient your heart truly is. I have learned that the heart is a bottomless well of love and commitment.

5). The words you use mean everything. At one time, I would invite words that formed at the foot of the wall and bled into the foundation. Defeatist sentences that only served the wall and never served me. I’ve noticed the word “why” weakens my spirit. It promotes a victim behavior. “How” is empowering. Ask yourself better questions with positive words and see how your thoughts take you down roads no longer confined by false boundaries.

6). Take a wrecking ball to conventional thoughts about money. Saving all your money in company retirement plans instead of brokerage accounts limits tax flexibility when you need the money the most. It’s financial industry dogma. Why must you purchase a house? How is it the American Dream? Is it truly an investment or merely a place to live?

7). Create and maintain accountability statements. I will be credit-card debt free by January 2015. I will learn a (specific skill) by December 2014. My internal walls are slated too fall today. Right now. Be accountable to the moment you’re in. What it means. How you got here.

8). Find a force. What can you do to turbocharge a positive process? I’ve used anger, fear, passion, revenge, love, faith, hope, hopelessness, laughter, teachers, students, clients, wonderful friends in the media and those creating art for award-winning television fiction/drama. Suck whatever energies you can to propel you forward until you’re a self-sustaining accomplishment machine. I’ve learned that good people are willing to help. To ask for help is a wonderful force. It’s strength, not t weakness to seek guidance. Provide as much gratitude in return.

9). Build protection. Wait a minute. You just advised me to break down walls. OK. One exception: Build layers around your passions. Do it so others can’t discourage you. Protect your resolve with all you’ve got. I’ve observed how many people and organizations bust out the big artillery to focus solely on the destruction of your dreams. They thrive and multiply on failure. I have learned to tune the destroyers out so well, I laugh at their silliness. So will you. I can’t wait to see the smile on your face.

10). Relish what’s in store for you. Can you imagine what’s ahead without debilitating speed bumps and barriers to stop you? The influential people you will touch, and who will touch you. The elevation of mind and spirit. The long-dead exhilaration that comes from resurrecting your true self. The stronger bonds of love and friendship. Like you have never imagined.

Featured

I was only with her for six hours but I had a name for her; I called her Daisy. I wanted her around longer. Naming her was a reach for hope. Hope she would make it.

To some thoughtless prick, Daisy was a living thing to be thrown away-destined to die on a busy Texas street. She hugged a dirty curb as best she could, her head too heavy to hold up from oncoming traffic. It was only a matter of time before Daisy’s frail dark frame would melt into a dark roadway and she would be killed by unsuspecting or uncaring drivers.

It was around 8:40pm. I drove a path from the gym I rarely take. I’m also seldom at the gym at deep night hours. I’m not overly religious but truly believe I was to come across Daisy for a reason. As I passed her up, she was literally sitting in a puddle of dirty water, barely able to move.

For a very brief second I too thought of driving on; I wanted to see my daughter and it was late. I played out in my head what was to happen next: It was inevitable this thin, weak puppy was going to be road kill. I was praying just one of the cars passing quickly would stop. Nobody did. As I looked in my rearview mirror I could see this poor thin animal attempt to stand. As she attempted to walk I could see the limp.

It was too much for me, I pulled over to get her.

I approached slowly; I didn’t want to scare her into traffic. As I methodically moved closer she got up and I stopped-talking to her gently with each step. Thankfully, she veered the opposite way toward a wooded area and not into the road. As she dragged herself and cowered behind a makeshift billboard in high brush, I was taken aback by her thin appearance.

She was tall, but looked half the size of a normal border-collie/lab mix (the vet educated me). She was not much more than skin, bones and big expressive eyes which followed me (and remained with me for hours after). I knew it was a she from the frayed pink and rhinestone collar around a thin neck. Once I felt she was safe, I retrieved a bottled water from my car.

Thirst was the only thing ferocious about this pathetic soul.

I carry a few huge bath towels in my trunk. I got them, scooped the puppy up in my arms and rushed her to a local emergency clinic. There was a two-hour wait to see a vet-I was willing to stay as long as necessary. Once we were in to see the doctor, I felt optimistic; in the waiting room Daisy got up a bit, wagged her tail, appeared curious about her new surroundings and me especially.

A little movement tired her quickly, though yet she never took her dark eyes off me. The receptionist called her eyes “soulful,” and there was something especially sad about them. In a very short period of time I was hooked. In love.

In my head I was thinking about how much this was going to cost (the talkative front desk person at the emergency clinic reminded me consistently they were not “good Samaritans,” and treatment was not free). Exactly what I was willing to pay to get this girl healed up and the strategy to find this abandoned sweetie a good home was somewhat calculated. My heart was a different story. Already, I added the cost of a new dog house and development of a cordoned-off place in my backyard.

The ongoing lessons about puppy diseases, especially canine parvovirus, began to dampen my hopes a bit. When it was suggested I could spend $300 I didn’t flinch and approved a test for the virus and an X-ray on a swollen left paw. By then I knew Daisy was approximately seven months old and had a whole life still ahead of her. Obviously, her future was taking a turn for the better. At least in my heart it did.

A couple of more hours passed. By that time, Daisy was asleep soundly on a cold exam table. I covered her so her shivering would cease and stroked her head incessantly. I spoke gently in her closest ear and she’d awaken to stare at me a bit and then put her head back down. By this time I knew there was no way I could part with her and would do what I could to make her well again. She deserved that.

After the parvovirus test came back positive, I was told it would cost $1,200 to take care of her for the night. My financial bandwidth expanded. Ok. Sold. Another hour passed. My firm belief was the investment in this girl was worth it; after all we would be together a long time.

Based on the increasing flow of serious patients, I was getting piecemeal information from three different sources and it felt like forever. It was now four hours later and with each bit of data I was riding an emotional high, then a low. I was on a high on the last round of discussion, until the vet came in again. Low blow time.

“Have you decided what you would like to do?” the vet asked me.

“I’m willing to pay to get her well, you said $1,200 right?” I blurted out. In my mind, the money was spent. I already mentally accounted for it and documented it in my I Phone budget app to make it official. I visualized a sliding scale and figured I was in the mid-range of what I would be willing to spend. It shamed me a bit since I was monetizing a life.

“Well, that’s only for overnight.” She continued as I began to feel a pit growing in my stomach. “In the morning she would need to go to another vet office for daily treatment. At night she would need to be transported back here to complete 24-hour care.”

I wasn’t told this crucial additional bit of information originally. As I mentioned, data received was scattered and piecemeal. After that bombshell I was left alone again as the sole, overworked doc on duty needed to exit for another emergency walk in.

By this time I’m stroking Daisy’s head and ear so hard, I’m afraid I’m going to pull the skin away from her skull. I’m thinking odds, probabilities and fiscal bandwidth. Then I suddenly felt like I was cheating on my current pup Princess. The figure $5 thousand popped into my mind too-no idea why. Would I spend this sum on Daisy who I barely knew but felt responsible for?

What if it was Princess in her place? What was Princess’ life worth?

What if Princess got sick soon and I already spent a fortune on Daisy?

I was stress-testing my fiscal parameters. And would Princess bite Daisy after all this? What were the odds Daisy would get well even after days, possibly weeks of intense treatment of 24-hour intravenous and monitoring? The vet was very cryptic to say the least. I needed more information to make a decision. And I was frustrated. I’m usually the one who is responsible and is consulted to resolve situations. Now, I just felt queasy and my brain was reeling. I realized the one who is customarily consulted did not like the unfamiliar role of one who required consulting.

Another hour passed. It was almost as if they timed a visit like clockwork every hour. I was beginning to think I could set a clock by the emergency crew.

This time a stocky vet technician entered. She was refreshingly straightforward, in my face and I was appreciative. “Rich, overall, this treatment will run $5 – $8 thousand by the time you’re done and there’s no assurance she will get better. The virus is pretty far advanced and the odds are not good.” She fell silent after that.

My dreams of a dog house and run in my new roomy backyard began to fade. The awkward introduction of Princess to Daisy also seemed to be more of a wish than a future reality.

“What would you do?” It just came out deadpan, without thought. I didn’t want it to, but it did; I did not want to hear the answer and I could feel my face tighten to a wince after the question left my lips. I rarely feel truly helpless-I can count the times on one hand. This night I moved on to the other hand.

“I would consider euthanasia. It might be for the best. It’s what I would do.”

Well, this was a horrible turn. But wait-Daisy appeared to be getting better from the time I picked her up out of the dirt; she was more responsive to me, her gums were pink (supposedly a good sign). How can it be the odds were so poor? The technician was sure they were and she had seen many of these cases. During this time, the poor puppy was sleeping deeply but I can tell her breathing was labored.

It was a decision I didn’t want to make. I make decisions all the time about lots of client dollars I treat as my own, but this was truly a dilemma for me and I was now up against the wall.

Next hour the vet returned, this round she had a bit more time for me. It was almost like the tech had prepped her. We reviewed the details again.

After six hours of tests, dialogue and anguish I made the decision to do what I thought was humane for Daisy. The vet and tech shed tears and thanked me for not leaving this poor girl on the side of the road. Supposedly, a parvovirus death is very painful. I didn’t want her to suffer, I wanted Daisy to have peace however, I wanted her to have that peace with me for years to come. I hated the decision and hated the fact that I took that road from the gym-at least at the time. I asked for a few more minutes with this gentle puppy who trusted me to take care of her and here I was soon to be responsible for ending her short life.

I whispered in her ear that I loved her (I truly did), I said goodbye full of tears and as I moved closer to her face full of fleas she licked me lightly on the cheek….

Of course I documented my experience on Facebook along with pictures. I also kept my daughter Haley abreast of all developments and I’m glad she wasn’t there with me. Facebookl friends were surprisingly sympathetic and caring and it was appreciated. The next day my good friend Stephanie (an ardent animal lover) and I exchanged commentary about the experience through instant messaging. I will spare all the colorful expletives about Daisy’s former allegedly irresponsible owners.

Steph: “What are you doing today?”

Rich: “Don’t know yet. Work being done on house. Just writing.”

Steph: “What you did for that poor girl is why we save. So we can help innocent animals in a pinch.”

Rich: “I was hoping she would be ok. I would have built a space for her in the yard. She was only 7 months old.”

Steph: “Of course you would have kept her.”

I rolled right over Stephanie’s comment; perhaps I was too full of grief to consider it or respond to what I thought later was such a prolific statement: What you did for that poor girl is why we save. So we can help innocent animals in a pinch.”

Random Thoughts:

1). Saving is so much more than something you do for future goals like retirement or education. It’s about having choice and occasionally it’s about the right now. Guess I always knew it; I’ve been preaching this money stuff for years. But sometimes you can lose sight of the obvious until a series of words and actions conjoin to re-spark your perspective. Money is part of life and sometimes it allows you to make a decision out of love. Some thoughts:

2). Occasionally saving money is to make a choice for today, not tomorrow. Would I even had the ability to help Daisy if I was overburdened with debt and didn’t have a strong saving discipline? Probably not. I would have possessed little if any financial flexibility to save this precious girl if her odds of recovery were good. Saving today can help you today, perhaps on your way home from the gym or grocery store.

3). Why you save reflects your passions and beliefs about money: Perhaps you save to give to a specific charity, or to help an animal or take your family on a special trip every year. It’s not the money, it’s what it adds to the fabric of your life and the good you do with it based on strong feelings and beliefs. Eventually some of the money is spent on a form of enrichment. Or at least, I HOPE SO.

4). Your household budget should be on the tip of your fingers, or as close to you as your smart phone. I was able to assess my budget and financial situation quickly. I was under enough stress already with the decision to help a dying animal. I don’t want to fly blind financially. Sit down alone or with a professional to understand the daily dynamics of your finances.

5). Saving is a gift to yourself. Even though I abhorred the decision I was required to make about Daisy’s life, I realized after my head cleared a bit, the money empowered me to save her from a prospective horrible death she certainly didn’t deserve. What if I wasn’t financially prepared? I would have needed to call animal control perhaps and I would have never been able to sit well with that decision, at all. I’m grateful to have crossed this puppy’s path; it was money well spent to give Daisy peace.

Years ago, a country music singer/mentor told me: “You name the things you love.” I realized for me to say I called her Daisy was blatantly incorrect.

I named her Daisy because for six hours, I loved her-because she needed me to. I still do. I will always. Are you saving for what and who you love for tomorrow and most important, today?

Think about it before a decision is thrown in the road on your way home.

I know she rests in peace. Love and money was able to provide a few more hours of comfort.

Featured

What are the obstacles that cause you to veer off course when it comes to retirement planning?

Increasing your odds of planning success shouldn’t be so complicated.

Solutions are obvious. There’s no magic.

Small changes in perspective or actions can lead to better results.

Hey, it’s never perfect either.

Remember the two main goals of the financial services industry:

1). To baffle you enough to sell you something you don’t need.

2). To force-feed you long-term bull market Kool-Aid to make you think stocks are a panacea (30% portfolio losses: Hey, no big deal. You have time on your side).

But you’re smarter than that, right?

Right?

My former employer’s retirement simulation is so happy-go-lucky and optimistic (because every market is a bull market), it reminds me of Homer Simpson’s happy dream romp through chocolate town.

It’s toilet paper.

Don’t fall for the hype. Don’t even wipe with it: You’ll get a rash.

Maybe it comes down to simplicity.

Let’s start with four words.

Random Thoughts:

1). NO. Recall the habit of lending money to friends and relatives who rarely make efforts to repay. It’s time to make your retirement strategy a priority and use the word “no” often. You don’t need to explain. It’s an uncomfortable but necessary perspective. At the least, you’ll need to be selective, perhaps formal in your agreements going forward. The health of your retirement plan is at stake.

If you’re passionate about helping, consider the support provided, a gift. Set rules at first if saying “no” is difficult. For example, establish a specific dollar amount in the budget for purposes of lending. Never lend to the same borrower twice in the same year. Decrease the allotment by ten percent every year until eventually it’s so insignificant you’ll feel too embarrassed to say anything but “no.”

“No” is personal empowerment. Think of the word as a boundary – A verbal line in the sand that deepens the territory you’re clear won’t be crossed. “No” is a confidence builder. It allows greater focus on the “yes” you need to succeed.

Consider how postponing or decreasing saving for retirement by placing priority on education savings plans or by taking on excessive debt to assist children with college funding deserves a “no.”

Naturally, you want your children to prosper however, when the time comes to retire, there’s no loan, financial aid or scholarship opportunities available to you. The kids have options for funding. You don’t. A hardline “no” isn’t necessary; a change in perspective followed by action may be good enough.

Understanding when a “no” is necessary to avoid a derail of your plan is art and science. A set of rules and setting expectations can help clarify when a “no” needs to surface. Perhaps you can partially subsidize education costs or seek compromise (a public, in-state option vs. the private university cost).

In eight out every ten plans I’ve designed, retirement is postponed by at least six years when parents decide to foot the entire education bill. Saying “no” to full boat means your retirement boat floats sooner. I’ve witnessed retirement postponed a couple of years in most cases when compromises are made – a big improvement over waiting six years.

Mitch Anthony, author of the book “The New Retirementality” describes the modern retiree as trying to strike a perfect balance between vacation and vocation. In other words, maybe the perfect retirement plan is to say “no” to retirement. The traditional perception of retirement is indeed dying.

I work with a large number of part-time retirees who consult or are employed a few days a week to keep their minds active and say “yes” to continued contributions to the workforce. Meaningful engagement in a work environment is important to this group however, those retirees who do work are ready to say “no” at a moment’s notice if their employment situation grows unenjoyable or less meaningful. They have much to offer and their experiences and skills are valuable.

As best-selling author and good friend James Altucher told me:

“Never say no to something you love, so you never retire.”

His new book co-written with Claudia Azula Altucher, “The Power of No: Because One Little Word Can Bring Health, Abundance and Happiness,” will be necessary reading and provided to those I assist with retirement planning.

Ponder the “no” opportunities. Start with the actions you believe postpone or negatively affect what I call “retirement plan flow” which is anything that prevents your plan from firing on all cylinders.

A client recently said – “I even stand straighter when I say no. It makes me feel good.”

2). WAIT: The most common mistake I encounter are retirees who look to take Social Security retirement benefits before full retirement age when waiting as long as possible can add thousands in additional dollars to a retirement plan.

I’ve had to say “no” to clients seeking to retire at age 62. And I’m not ashamed. What’s three more years? It goes fast. And waiting can be lucrative. According to a 2008 study by T. Rowe Price, working three years longer, waiting until full retirement age, and saving 15% of your annual salary could increase annual income from an investment portfolio by 22%. If you can handle five more working years and save 25% of your annual salary through that period (takes some work), then expect a surprising 50% more income in retirement.

Delaying Social Security benefits from full retirement age to age 70 will result in an 8% increase plus cost-of-living adjustments. Where else can you gain a guaranteed 8% a year? Of course, nobody knows how long they’re going to live but if you’re healthy at 62 and there’s a history of longevity in the family, it’s worth the risk to wait until at least full retirement age.

3). SELL: Based on a recent paper written by Michael Kitces, publisher of The Kitces Report and Wade D. Pfau, professor of retirement income at the American College, reducing stock exposure at the beginning of retirement then increasing over time is an effective strategy for reaching lifetime spending and portfolio survival goals.

The heart of the research is “Plan U” (for unorthodox in my opinion) — a “U-shaped” allocation where stocks are a greater share of the portfolio through the accumulation/increasing human capital stage (makes sense), decrease at the beginning of retirement, and then increase again throughout the retirement period.

The concept of reducing stock exposure early in retirement and increasing it later sounds highly counterintuitive – although from a market and emotional perspective it’s plausible, especially now.

First, be sensitive to your mindset as shifting from a portfolio accumulation to distribution strategy can be stressful. Focus on financial issues to allay uncertainty like (don’t let greater stock exposure add to stress), household cash flow and retirement portfolio withdrawal strategy. Gain and monitor progress with a financial partner or objective third party at least every quarter for validation and adjustment. The first year of retirement is an opportune time to step back from stocks especially as you feel uncertain and occupied with what I believe are more immediate concerns.

Second, stocks are not cheap based on several long-term price/earnings valuation metrics. Selling if you’re close to, or at retirement can be an effective strategy. Regardless, you may need to rebalance to free up enough cash to begin retirement account withdrawals by trimming profits in the face of lofty valuations.

Not a bad idea. Yes – sell, not buy.

As of the end of May, the P/E 10 which is based on the ten-year average of actual corporate earnings stands at 24.9. Since the historic P/E 10 average is 16.5, the current bull indicates an extreme overvalued condition.

Last, even though the key word is “sell” don’t forget to periodically add back to your stock allocation. Get the topic on your radar and continue the “U” formation after two years in retirement have passed. By then, you should have greater confidence in your overall plan and settled into a lifestyle pattern that suits your well-being.

4). SHIFT: Be open-minded and willing to alter plans as required. After two devastating stock market selloffs since 2000 and structural changes to employment including the permanent loss of jobs, we are growing accustomed to dealing with financial adversity – shifting our thinking to adjust to present conditions. Actions outside your control – poor interest rates on conservative vehicles like certificates of deposit, can disrupt retirement savings and cash flow. On average, the Great Recession has motivated out of necessity or fear, the desire for pre-retirees to work longer and continue to carefully monitor their debt burdens.

In addition, shift your thinking about continuing to save aggressively in retirement accounts as you get closer to retirement. If 80% or more of your investments are in tax-deferred plans, and you’re five years or less from your retirement date, I would consider meeting the employer match in retirement plans and saving the rest in taxable brokerage accounts. This strategy affords greater flexibility with tax planning during the withdrawal phase as generally, capital gains are taxed at lower rates than the ordinary income distributed from retirement accounts.

A qualified financial and tax professional can create a hybrid process where funds are withdrawn both from tax-deferred and after-tax assets. The goal is to gain tax control by not ending up in a situation where ultimately all distributions are in retirement accounts which will ostensibly be taxed as ordinary income. Your strategy requires close examination of how to blend all investment account distributions to minimize tax impact.

Shift your attitude about annuities. Look beyond the bad press and overarching negative generalizations you hear from financial personalities in the media – “Annuities are bad.” Are all annuities bad? No.

Several types of annuities exist. Some come with overwhelming add-on features and are difficult to understand. You’ll know when to step away. Others are expensive and should be avoided. For example, variable annuities with layers of fees are a bad deal. I find little benefit to them in retirement planning.

The greatest purpose of an annuity is to provide an income you cannot outlive. In its purest form, an income annuity whether immediate or deferred can be used to bolster the lifetime income from Social Security.

As you budget, total how much is required to meet household essential expenses, indexed for inflation: Rent, mortgage, utility bills, real estate taxes, food, gas, automobile payments (you get the picture). From there, work with an insurance representative (could be your financial partner), to calculate the investment required in a deferred income or immediate annuity to cover mandatory expenses along with Social Security.

An annuity investment takes over some of the burden of funding retirement; it shifts risk to an insurance company which increases the odds of portfolio longevity and or having the money you seek for fun stuff like travel and hobbies.

Retirement planning satisfaction can happen.

Occasionally, we create obstacles by accident.

Simple words can be powerful tools to cut away the confusion and settle your mind.

Featured

Five years after the financial crisis and those who cross my path tell me it feels like the recession never ended. They are stressed over personal finance, investing and debt management.

I get it.

The concerns are valid. The stock market is up close to 200% since March 2009 so who wants to chase it; housing is sloppy but recovering. In several pockets of the country, real estate is expensive and prices are out of reach for many individual investors. Wage growth is dead (you receive a raise, lately?), we are spending more time in our death cubicles and missing soccer games. The masses burned out three years ago and saunter around today like the living dead hoping they can make it home to collapse in front of the television.

Sort of blows.

However, there are ways to take smart steps and overcome fear and procrastination:

To feel alive and in control again (remember that?)

Random Thoughts:

1). Go beneath the fears. Sure, I bet you can banter on about what concerns you. Until you use pen and paper to list what’s heavy on your mind, you’ll never completely weigh the implications of doing nothing. You may be surprised to discover that what really frightens you is merely a misunderstanding.

For example, I have a friend who was hesitant to save for retirement but his true dilemma was frustration over the limited choices in his current employer’s retirement plan; he failed to understand other retirement account choices were available outside his job.

Documenting fear will narrow down to issues you may explore with professionals or confidantes. An action plan outlining milestones will provide a sense of accomplishment and embolden you to accelerate positive behaviors.

2). Push ahead mentally 20 years to feel the painenough to make one move. Who says you need to walk huge steps at once? Take small steps and move already. A way to create a urgency is to imagine what your life will be like two decades into the future if you remain in finance neutral.

What will your life be like 20 years from now if you don’t begin saving for retirement? Forget all the financial industry bull that makes you feel like if you don’t start socking away money from the age of 25, you’re permanently doomed to a life of poverty. It’s like me saying – “Hey, you’re 40. Too late to improve your health through diet and exercise, so just forget it. “

I’ve worked with many accumulators who have hit their stride late, made changes to reduce debts and increase savings at a time when they believed – “why bother?” Along with an investing strategy they have caught up. They’re in a better place, financially.

So you’re late getting off your ass: Big deal. Just start.

3). Do some research. Knowledge is power. As you learn, fear will fade as you engage. A lack of knowledge will stir up uncertainty and freeze you in place. Sort of like what happened to us immediately after the Great Recession. Who the heck thought we could suffer another devastating economic collapse?

Don’t succumb. Dig in, a piece at a time until you feel less uneasy about the topic. Nobody expects you to be an expert; don’t be too hard on yourself. Gather opinions from professionals. Know the rewards AND risks.

Be wary of too much knowledge. Yes, you read that right. In other words, those who immerse in a subject begin to feel invincible. It’s at that point, dumb mistakes are made. You must remain humble in your quest to avoid overconfidence bias. Pompous asses usually don’t win. Don’t be a pompous ass. It takes too much energy for nothing. And nobody will want to help you reach your goals.

4). A little fear is healthy. When it comes to money I find fear to be a motivator if used in controlled doses. Slight discomfort is healthy and will push you ahead. It’s through time and experience that fear will be perceived as friend. You should never get too comfortable when it comes to handling your finances. Discomfort breeds curiosity. Curiosity leads to awareness, especially of risk.

Eventually, inertia will be a memory; it will no longer prevent you from making improvements, seeking opinions and basking in accomplishment.

Household financial stagnation is still with us.

Doing nothing is detrimental to your long-term accumulation of wealth.

Featured

If you berate the person in the mirror and think or speak in defeatist terms, then you’ll walk a loser path word bricks have laid out for you.

So what are the words, phrases and sentences that can help you alter your current thinking about money?

How can you create a positive financial feedback loop?

Random Thoughts:

1). The words you say to yourself are everything. Even if not exactly true (yet), what you convince your mind of, will eventually happen. It’s called imprinting. You’re moving your thought process from negative to positive. Here’s how to switch it up. So you tell little white lies to yourself. Big deal. As long as their positive, who you hurting?

Give yourself a break.

Instead of: “I’m a spender,” say “I’m a saver.”

“I will use cash over credit.”

“I will save 5-10% of my salary.”

You’ll be receptive to take constructive action if you train your mind to feel good first about the decision you made. Say it then do it.

Get your lazy ass online to your 401(k) account and increase your contribution by 2% this weekend. Then worry about where the money is going to come from. You won’t even notice the change.

2). Ask yourself better questions. Never use the word: Why. Why sets the stage for financial failure and mental obstacles. Why can be a death sentence.

Replace why with how.

For example, “why don’t I receive a raise?” is defeating language.

Think: “How can I receive a raise?” which forces the mind to create action steps to the goal you’re looking to achieve.

3). Create a “Crossroad Statement.” A “Crossroad Statement” is a “blood” declaration to yourself; it’s when you finally admit your current financial situation is not where you want to be.

It’s a decision in writing, to make a change – “I will be credit card debt free by February 2015.”

Keep your CRS with you; place it as a reminder in your smartphone.

4). Shamelessly employ coaches. Want to make your “Crossroad Statement” strong? Share it with people who will hold you accountable, keep you on track and celebrate your success.

5). Failure is power. Yeah, you read that right. So you fail at something, so what? What did you learn? How will you use the lessons to move ahead?

Words are everything.

The ones you employ to money map your mind will make a big difference to your future.

Featured

Zombies have been taking over your city whether you realize it or not.

It’s been happening for decades.

Good enough reason to keep your doors locked, people! Not that locked doors help for long. After all, a mere few zombies can turn over cars so bolted doors and measly plywood over windows buys you just enough time to say goodbye to the loved ones.

Sooner or later you’re on the menu.

Zombies are so white-red hot right now; these decaying, staggering masses or the deadest of “us,” easily steal attention away from popular (yet horrific) headlines from the likes of a very living Kim Kardashian stripping down or Lindsay Lohan losing her top at a nightclub. Who wants to see a naked zombie exposing her breasts (except out of macabre curiosity?)

Well, I do! But that’s just me.

The living dead have risen in prominence. Taken their rightful place. Gnawed their way to the top.

For decades their popularity has ebbed and flowed yet their presence has never truly decayed. And now they’re everywhere you turn. It’s the zombie time to shine! Albeit they’ve lost a healthy glow shared by their breathing cousins but it doesn’t matter.

I don’t see zombie popularity diminishing in the near future.

As economic conditions remain strained and public unrest persists, the fascination with these rotted maggot shells lives on. Several investigations exist to prove my case. I won’t bore you with them.

I’ll share my own rationale behind zombie fever. Also why I’m scared of them and admire them at the same time.

First, think about this:

They don’t fret over paying electric bills, meeting mortgage payments or college tuition
costs. The days of anguish over the daily money monkeyshines of the living are gone! Surviving takes on a totally different perspective.

How we relish those with reckless abandon who can just chase and bite, stagger and gnash like rabid animals.

The Government has even been known to send dead people unemployment and social
security checks but they have no need to cash them. I’m jealous. The mortal coil
of everyday fiscal obligations is broken. We are envious of the financial freedom. Who
wouldn’t be?

Zombies are brazenly wasteful and they don’t care!

It gets me frustrated. If the living dead are so ravenous why do they take no more than two bites of prey and move on? There isn’t an endless supply of warm bodies to nosh on.

The undead need to do better with food handling. What about all those starving zombies in China? Even when they decide to dig hard and tear deep through a victim zombies don’t appear to be eating. They play with their food (in this case elbow deep in intestines, organs and other nondescript red slimy entrails). If I enjoyed my food this much as a kid I would have been in enormous trouble with the parents.

Perhaps I’m missing the point.

Maybe zombies don’t require sustenance. Now that I ponder, why would an animated rotting corpse need nutrition? Could it be they bite primarily to propagate the undead population?

They don’t appear to be very friendly to each other. I don’t witness any bonding among zombie hoards that convinces me they derive any benefits from increasing the undead population through procreation. I witness no hand holding or team work. They don’t even trip over each other.

Zombie French kissing seems wrong, too. Some don’t have tongues.

In the AMC hit television series “The Walking Dead,” a believable explanation for the
genesis of said program title emerges.

At least it allays some of my frustrations over the deliberate waste of the fresh walking food supply.

In the Season One finale “TS-19,” the sole remaining doctor at the Center for Disease
Control (gingerly insane although very sage from a lethal combination of: Isolation, shooting his wife known as test-subject 19, and acceding to the awful truth
that there is no cure for the afflicted), outlines findings as a zombie zealot, I find plausible.

The brain stem is restarted. Gets them up and moving (makes sense to me).

Most of the brain is dark: Dark, lifeless, dead. The frontal lobe, the “you,” the human part is gone (it does appear that way).”

I’ve concluded (I think), animated dead folk are indeed ravenous.

They don’t possess the human or humanity (what’s left is a tiny spark of light at the base of the brain) to make the most of preserving the food source.

Dr. Steven Schlozman, a psychiatrist, Assistant Professor at Harvard Medical School and author of the book “The Zombie Autopsies,” would agree with Dr. Jenner’s conclusions and sizes up zombie appetites in a further professional manner perhaps because he never lost a loved one to a zombie nibble:

“The ventromedial hypothalamus (in the brain), which tells humans whether they’ve had enough to eat, is likely to be on the fritz in zombies, who have an insatiable appetite.”

I sort of admire how “walkers” (what zombies are called on “The Walking Dead,”) can be wasteful (and eat whomever they want) without any repercussions. No weight gain.

Damn them. Damn them all even more than they’re already damned. Jealous.

Zombies don’t need to exercise and it’s inevitable they’re going to lose weight without
much effort. I so hate them for this. As a matter of fact even though Hollywood never
seems to get it, if survivors can wait long enough, hunker down. The dead are literally going to rot.

It’s not like they’re embalmed or preserved. They’re sauntering about through
the harshest of elements. Eventually they’ll be dragging around close to the ground. Clumps of harmless, fermented flesh if you’re patient enough. You can then brazenly walk up and do a step and squash on what’s left of a head. Simple.

My boots are ready!

Zombies don’t poop. They’re no longer human, therefore they can’t blow up the economy, housing, stocks, banks,the currency, gold, or whatever else financially related. It would be a relief not to be bothered with reading all the financial publications that consume me.

Since zombies don’t experience fear, avarice, lust and all other very human vices I can’t foresee how they could fuck up the economy any worse than we can. My belief is corporate America is ingenious enough to eventually replace living employees with the undead at a moment’s notice.

They don’t require wages, benefits, time with family or friends.

Can you see the writing on the wall here?

Zombies no longer feel torment, guilt, revenge, passion, regret. They don’t hold baggage from parents who messed with their heads.

No cheating spouses or backstabbing friends to fret over. No Viagra (they’re stiff enough). No looking to slice up the boss (unless it’s for the purposes of eating.) Bliss!

Zombies can’t run no matter how some movies mess this up. I have a major issue with this one and I’ve studied zombies since I was ten years-old. This is purely an exploitation move created by film makers to make audiences feel more vulnerable and scared. No thank you. I’m scared enough by the staggering, original kind.

Dr. Schlozman would back me up big time here. The good doctor in his book takes his
zombies seriously. As a matter of fact, when the zombie apocalypse finally arrives, survivors must find a way to the doc. His extensive study will be invaluable.
These primal hollows of our living selves just cannot run. Done.

Zombies should stink to high heaven so why don’t victims smell them coming from at least
half a mile away?

I once went an entire week without bathing in 1989.

That’s after sex with two different women, eating several boxes of Entenmann’s orange-swirled chocolate Halloween cupcakes, ten Big Macs and washing it all down with large cups of coffee laced with heavy cream.

I recall plenty of female nose crinkling and waves of disgust. Good thing I didn’t leave the house.

You rarely see disgusted looks on the faces of the living. I never heard once in a zombie movie.

“I can’t handle the smell of these walking maggot bags.”

“My eyes are watering from the stench of these fuckers.”

“I’m going to vomit from the ungodly odors these dead things throw off.”

Well, to pay homage to the terrific writers of “The Walking Dead,” like Nichole Beattie (who also has great hair that frames a perfect brain) there have been various references to puke, puking and zombie dead-body odor peppered throughout episodes.They’re passionate about authenticity unlike most who cater to us zombie zealots.

I wondered: Can these sages learn from the behavior of the undead? I believe so.

The dead providing life lessons sounds strange, but I’ve been humbled by the dead. Their teachings sit deep in my frontal lobe.

In many ways, those who have passed are by my side more than ever. They might as well be walking alongside me in following dark shadows.

I’ve learned a valuable lesson over the last two years as I’ve studied zombies:

Hey asshole: Get out of the grave you’re still alive!!

What caused me to living die? What causes you to living-die every day?

Working for corporate America (I affectionately call “Corpse America”) was a living death. Every day the corporate overseers would concoct creative ways to squash my spirit. I was under the cancerous thumb of a bloated financial services firm that lost its ethics and I was rotting away. Fast.

There was less time being productive and more mental resources wasted on complying with draconian-like rules and impossible sales goals that were progressively getting worse.

I was able to fight off the corporate infection for years. Then I couldn’t battle any longer.

My immunity for bullshit broke down. I gave zombie-ism permission to wash (bleed) over me. Limbs went limp. The stamina and passion for my business was draining fast like black blood from a gaping neck wound.

I loved the clients and co-workers but felt truly powerless over my destiny. I was bleeding respect for myself and for the first time in years, the confidence in my skills was drained. I was frightened all the time and the dead were closing in on my space.

No matter how much wood I nailed over the windows they just. Kept. Coming.

Was I the only one who felt like this? I don’t know. I could see the light fade
from the eyes around me. Others were going to allow their souls to flee the mortal cavity.
There were the kids, or the mortgage, the car payment or the necessary financial
support for the stay-at-home spouse. Everyone was overextended.

Surrender felt like the only option. It was like exposing your most important parts willingly to a nasty zombie bite.

Ongoing bad health habits sooner or later, are a coffin filler.

In 2006, my idea of diet rarely strayed from a cheeseburger with a side order of donuts followed by another cheeseburger and six more donuts.

That was 50 pounds ago. I managed to do enough damage to my organs in one year to end up with Type 2 diabetes, high blood pressure and cholesterol level approaching 280.

I was so out of shape even a zombie-like stagger would have put me out of breath. Having diabetes scared the zombie out of me. The thought of going blind or losing a limb was more than I could live with. Dead man walking (on one leg) was not going to happen!

I changed overnight. Oh I’m not perfect, but the disease was a blessing in disguise. I needed something frightening to jump start me.

It worked.

Think about it: What will jump start you to take your health seriously before it’s too late?

Big debt is a flesh biter. Excessive debt levels are a lethal weight on your shoulders and will suck the living life (and death) from you. Whether it’s your household or a government, too much debt is a brain drainer. Oh, you’ll still be able to walk around but dead inside you will be.

It’s worse for your situation than for most governments since you can’t create your
own money (well legally anyway). Too much debt in any form will have you unbalanced
and rotting in no time.

Media overindulgence, especially television, zombifies the frontal lobe. I hate to feel this
way since I know so many terrific media people. It’s just that television especially pseudoreality (not real reality because who wants to watch that?) campy talent and political drivel all eventually erodes the stuff that makes you “you.”

Just monitor and limit your intake.

Writing and reading for at least an hour a day keeps my frontal lobe in a less gelatinous
state. Find what works for you. Even playing a board game might help. Not
Sudoku. I’m convinced zombies created that game. Sudoku players fill out every Sudoku puzzle in every magazine at every doctor and dentist office. It spreads like
chicken pox. Stay away!

Syble Solomon, creator of Money Habitudes™ writes about how the television virus
attacks and tempts you to spend money:

“More subtle are the images of what is
“normal” that are created in most television
shows and movies. Usually people
are well dressed, have great accessories,
drive nice cars and live in up-scale comfortable
housing with expensive furniture and beautiful kitchens. You rarely see anyone
paying for anything on TV or in the movies.”

You ever see that fancy apartment on the TV show “Friends?” How did those losers afford it? You begin to believe that’s normal! It’s NOT. Unless the women were high-end call girls working overtime. Then it’s a possibility.

What knowledge you can gain from the walking dead. See? There’s so much.

You’re not the shuffling soulless yet. Be thankful for that. The zombie inside captures
your glance in mirrors. It so desires to permanently deprive you of all the colors
that make you warm and human. It will win if you let it. It works to tempt you.
Even though it feels like you’re dead sometimes, of course you’re not. The nice thing is there’s a cure for your zombie transformation. You can come back.

I know how some of the stuff I wrote about earlier can fry you from deep inside – the
job, the bills, the spouse, the boss, the debt.

Then there’s the receding hairline, the erectile dysfunction. How do you handle this?

Discover ways to restore faith and revive the soul. Search out, step back and document the humans, actions, things that keep you alive and grounded.

It’s healthy to be wasteful once in a while. Put the zombies to shame.

I’m not alluding to tossing crisp, new $20 bills from the sunroof of a moving car (I
tossed a Shania Twain CD from a moving vehicle once). I’m not even referring to
willfully taking a teasing bite out of a filet and discarding the rest just for kicks.

I allocate one day a week (usually a Saturday because I’m a horrible creature of habit,)
to partake in completely wasteful (occasionally disgusting) activities and lovingly
simmer in my own juices.

I take my time closely examining the latest edition of Maxim Magazine, an occasional Playboy, Men’s Health. I eat Chinese take-out in my underwear, indulge in endless Three Stooges episodes on DVD. I strive for a zombie-like state of non-awareness. Is that a word? You get the picture (I’m sorry).

Decompression is a good thing. My theory is that naked zombies really comprehend this chilling out thing. I admire free spirits (living or living dead). Unfortunately, there’s a real scarcity of nude zombies in movies and television. It’s blatantly pitiful (NB, can you work on that?).

The undead have been stalking society long before they became mainstream. They’re
equal opportunity, infiltrate all races and cut a bloody swath across political lines.

They gain attention when economic conditions deteriorate or improvement is anemic.
They pop up during times of social unrest. Since the last recession, the most severe in
decades, zombies have been downright frenzied.

When things are good, we’re making money or generally less turmoil exists in the world, zombies are pushed aside, beaten down. Mocked. Contained.

As much as I love them because I enjoy scary thrills, I long for the days when zombies are disrespected again.

I don’t recall zombies so relevant and overwhelmingly popular as they are today; I’ve been keeping track of their ebb and flow since I first bug-eyed watched the black and white cult classic film “Night of the Living Dead,” by zombie Master Muse George A. Romero, on a crappy plastic encased thirteen-inch black and white TV. 1973.

Romero: The Zombie KING.

In 1968, the year “Night” was released, the Vietnam War was released, the Vietnam War was raging, civil rights protests were grabbing headlines and Martin Luther King, Jr. was assassinated.

The film cost a grandiose $114,000 to make which even then for a movie was a pittance of a budget. It has grossed over $30 million worldwide. What a return on investment!

Romero created a controversial stir by featuring a black man, unknown stage
actor Duane Jones, as the brave and resourceful hero while most of the men (white) in
the cast were blowhard, wishy-washy or backwoods white folk.

Romero also plays up the contemporary theme of government distrust as dead
body brains are “activated” (allegedly) by radiation expelled from the explosion
of a space satellite, the “Venus Probe.”

Throughout the film, there are shots of military officials (actors) fleeing from television news cameras all the while denying the connection between the radiation and the returning dead who make a meal out of the living.

The bitter irony of the movie is how Ben (Duane Jones) solely survives the night of ghoul attacks by locking himself in the basement of an abandoned farm house only to be shot in the head the next morning by a white member of a sheriff’s posse as he’s mistaken for one of the remaining zombies roaming the countryside.

I remember watching. Scared to death, frozen. Shocked. I recall muttering the words:
“This really sucks.” I hated the ending but I understood the point Romero was trying to make. Well, I think I do. Back then, I interpreted the messages through my warped mental screen. I still believe my interpretation holds up.

First, why bother to survive a zombie hoard if you’re going to be shot in the head byyour own people (the living kind) anyway? What a waste.

Second, make more noise and scream actual words like the living (not guttural grunts like the dead) if you see a posse out a window! Ben, Ben, Ben. You were too quiet. I understand you just went through hell and you’re bit dazed but if it’s me I’m screaming like a sissy living, defecating human who just soiled his Fruit of the Looms!

Third, based on the social turmoil of the 60’s, I think Romero sought to use the film toconvey messages about the futility of the Vietnam War (conflict) and the tragic assassination of MLK, Jr. Go ahead fight the good fight, be honorable, stick to your convictions, but understand there is still a great risk. The hero can indeed fail or die. I hated how Romero killed off Ben at the end (I know I mentioned that, already).

Fourth, an interracial couple holed up in a farm house (even when the female is young,blonde and completely unresponsive) doesn’t mean sex is definitely gonna happen. Huh?

Not when Ben is around! I was wondering when he was going to rip off Barbara’s (played by a very blonde actress named Judith O’Dea), clothes but all he did was comfort and protect her. Well, he did knock her out with a hit in the face but it was perfectly understandable. She was unhinged after watching her brother become zombie brunch. Like the opening of a porn flick, yet BEN stays out of trouble.

Even after she clawed at her scarf saying “it’s hot in here, hot.” NOTHING. Ben,
you helped me understand what being a gentleman really means. Can you imagine
if Romero had Ben have his way with Barbara?

Make sure the bank you choose is covered by FDIC and you don’t breach the coverage limit which is $250,000 per depositor.

Also, banks currently are not required to play by the rules – due to suspension of accounting rules whereby assets on the books are not priced to what the market would actually pay for them, there are banks that most likely are insolvent (or dead) yet still alive!

Plainly, if it wasn’t for the suspension of this rule called “mark to market,” poor performing banks with liabilities exceeding what assets are worth, would have been truly dead a long time ago and not still occupying a location near you.

When I was ten, mom would leave me home alone on Friday and Saturday nights until she found out my babysitter and her girlfriends were dancing naked in front of me during late-night TV’s Don Kirshner’s Rock Concert.

What did I know? I was pre-occupied with covert G.I. Joe missions. I never minded the
nude dancing. I’d glance over once in a while. It looked fun and free. I was scared to be
alone on occasion but mom needed her boy time I guess.

I owned the most extensive G.I. Joe collection in the neighborhood until my mother
made them disappear one by one. She was like a sniper/kidnapper the way she picked them off along with my other toys.

Especially cool were the Joes with fuzzy hair and beards. I never really embraced the Kung-Fu Grip line of brave soldiers for some reason.

We recently moved to a second floor apartment adjacent to a stairwell. The halls on weekend nights were lively, especially after midnight. Kids making out, the occasional marital fight spilling out, enriched with curse words bouncing off hallway walls, outright screaming.

I can still remember the first time I watched “Night of the Living Dead” on an ABC Saturday evening late show. The idea of zombies was sort of goofy to me before then. I believe I watched Scooby Doo trip one up on morning television. To me they were clunky cartoon relief. In black and white, late at night and thirsty for blood, zombies gained more of my respect. Scooby Doo was either brave or just a dumb ass.

It was that damn, dead woman at the top of the stairs. The devoured face. That eyeball staring at me, piercing me through an old RCA Television screen.

My perception of zombies had changed. Forever. They haunted me from that moment.
If I would have known how popular they were to become, I would have given up on this
money management business a long time ago. There was a fortune still yet to be made exploiting the undead.

According to the blog “24/7 Wall Street”, zombies are worth over $5 billion to the economy. Costumes, movies, novels, comic books, video games, television shows. All serious business.

From cult following to popular mainstream, the dead overpower the compensation of any cadre of top U.S. corporate CEOs who now make 400x what you do.

1). Zombies represent our human weaknesses and loss of control over our environment. During periods of economic distress, their popularity festers. Fear of loss, lack of confidence, subpar gainful employment are prevalent today and will be as we slowly emerge from a housing, financial, credit, banking crisis atomic blast.

2). The living dead represent the vulnerability that lives deep inside our guts. It’s the human condition pushed to extremes. It’s the threat of loss. The loss of our ability to be human. A test under severe pressure. Up against the wall, you find out who you truly are. At this time, many of us feel vulnerable in our jobs, with our incomes, our relationships. In these times, zombies demand our full attention.

3). Understand what rots you. Stuck in a cubicle overseen by mindless middle management bosses, abrupt changes to your income, excessive debt, negative people, bad health choices. Hell, you think zombies are scary? Try to have an intelligent conversation with your boss. See if he or she can think independently from the infection swallowed daily from the corporate “stink” tank.

4). Political turmoil stirs the zombie hoards. Didn’t George A. Romero effectively teach us this lesson? There exists less faith in our leaders regardless of political party. Uncertainty allows the walking dead to herd, gain strength in numbers. In certain states, they may be allowed to vote. I’m not sure.

5). The economic system is still rotted and dragging dead feet. Five years after the worst financial crisis since the Great Depression, and the economy is still shuffling slow like a zombie in the August Texas sun. Below average economic growth, structural underemployment, first-time homebuyer malaise, below-average or non-existent employee wage growth, real median household income off 7% from 2008. This isn’t a healthy state of affairs, everyone. Actually, it’s fucking disappointing.

6). Corporations are now zombie factories. Especially the publicly-traded ones. Hey, as a money manager I love how corporate leaders hoard labor, work current employees to exhaustion, utilize financial alchemy like purchase back stock shares to boost earnings-per-share and stock prices. As an employee herding in a work force where labor is plentiful, where an individual can be replaced at any time by someone willing to accept half the pay, I would fight like hell to get out before the zombie infection takes me and I’m gnawing on an arm by moonlight.

7). It’s acceptable to go brain dead on a schedule. We’re an overworked society; people don’t take vacation anymore. Americans fear for their jobs when they take time away from their technology to be with their family. Set aside a few hours every week to indulge in a guilty pleasure. Hell, eat a pizza in your underwear. Drip salsa on your shirt and suck it off. Whatever.

1:00AM: The hall outside my apartment was especially loud. During commercials I checked the peephole but saw nothing. Then, from out of nowhere, it sounded like a sledgehammer at the front door:

BOOM BOOM BOOM!

I couldn’t breathe. I was paralyzed. I hit the red shag face down. I sought to go deep believing if I was part of the carpet, I couldn’t be discovered.

I belly crawled to the kitchen to knock the red Bell Telephone Trimline off the hook.

Thank god for extra-long pigtail phone cords. One tug and the receiver would be mine.
Stay calm. Hit the neat little lighted buttons for 911. Brooklyn’s Finest would arrive quickly to save me from the zombie with a weapon.

Then it stopped. As fast as it started the pounding stopped. The banging went dead. On
my television I saw hero Ben lighting a corpse on fire using a makeshift torch. Was I going to need to take notes? I could use a G.I. Joe as a torch. I bet that fuzzy hair would go up quick.

I was hesitant to call the police now. I was upright. I walked slowly back to the sofa facing the television. It was eerily quiet outside.

I crawled to the front of the apartment and looked underneath through lit-sliver between door and floor. Nobody. Nothing. No sound except for a heart pounding in my ears. I stayed pinned down. Not blinking.

And Ben died. Shot through the head. Just like that.

The next day I discovered there was an arrest close by. The ex-babysitter’s boyfriend had broken into several apartments. Items were stolen. Supposedly he was looking for a place to hide and thought he could take refuge in my apartment. He thought the babysitter still had a standing appointment with me.

That was the first and last time I was glad a young woman wasn’t around dancing naked in front of me.

That was the first and last time I was glad about a decision my mother made.

Featured

Those under thirteen tend to be an overly-excited group known to blurt out whatever is on their minds often at the surprise of adults in the room.

I always make sure to have plenty of treats for everyone at the end.

Since it was later in the day, the fourth grade class that made the journey to the office recently was especially ravenous, however I wasn’t going to change the routine-we learn at the beginning, ravage the cakes at the end.

This batch of cupcakes was especially fresh and frosty. But it didn’t matter: I wasn’t going to deviate from the plan I’ve used for years.

Out of the mouth of babes – lessons and behaviors we’ve clearly forgotten. As adults we are relentlessly bombarded with the noise of daily living and sometimes we just don’t see things clearly based on our own biases. Children are overwhelmed with stimulus too, however they don’t have as entrenched a filter and they’re willing to see things as they are and happy to share an opinion.

There are wise words coming from the mouths of babes if you only listen.

Random Thoughts:

1). Do homework first – Many of the kids believe that before you make an important purchase, you do your homework. Now, their homework may not be as sophisticated as yours, however investors tend to forget, especially when the markets are more erratic, that emotions can overwhelm the desire to dig into facts.

We take action first out of fear or panic and deal with the repercussions later. The kids always seem surprised how many adults will buy and sell investments based exclusively on what they see or hear on television and radio. Mind you, these young students think it’s perfectly ok to purchase a breakfast cereal based on media, however acquiring an investment or “something that can go down,” (their words not mine) requires more time and effort.

During market extremes it’s timely to take your portfolio’s pulse (and yours) to determine whether you’re comfortable with your asset allocation plan-the division of assets into stocks, fixed income, cash and other investments. If your portfolio is gyrating more than the market up or down and you’re uncomfortable, homework is required to narrow down the investments causing the turmoil.

From there, it’s time to decide (based on the homework not heartburn), to take one of three roads as you evaluate financial holdings: Stay the course, buy more, or sell the investments causing distress. Again, base these decisions on your tolerance for risk and then maintain that risk profile through good and bad cycles.

2). Buy low – I know this sounds flippant or simplistic-for the mature crowd, buying low is easier said than done. They children believe they should try their best after research, to buy low into investments or at least they hope to accomplish this on a consistent basis. We teach the kids patience when they want a new video game, it’s time we teach ourselves some patience and let asset prices come to us. I know. Good luck with this one, right?

3). Buy what you understand – Another easy one, (in theory anyway). The kids feel strongly about buying what they know or understand. Occasionally, we make a portfolio allocation too complicated by purchasing investments we don’t fully grasp. There are a plethora of vehicles on the marketplace that are based on currency movement, bet against the markets or particular industries, and promise appetizing returns when the market is directionless.

What is the impact to the overall portfolio? If the addition appears overly complicated and you can’t explain it to a listening party, you may be better off passing on it. A complicated strategy is not necessarily a better one. Your investment plan needs to be realistic, actionable and comfortable based on your personalized goals and aspirations.

4). A sell Discipline, what’s that? – Children seem to embrace the idea of selling investments and moving on. For some of us grownups, this can be a challenge. We tend to be resistant to rebalancing or we allow one investment to swallow up a major portion of the portfolio, resulting in more risk. If you don’t have a discipline around buying and selling assets to restore your portfolio to an original target allocation, then ultimately you’re not controlling risk. Rebalancing requires a contrarian nature whereby you’re shaving down what’s done the best and adding dollars to those asset classes currently out of favor.

A concentrated position means that a stock, industry or sector makes up a disproportionate share of your total portfolio, usually 20% or more. The end results is more volatility in the portfolio as the key driver of returns, good or bad, depends on the performance of a large holding. Investors are sometimes reluctant to trim concentrated positions due to the tax implications of a large capital gain or an anchoring to a past price to minimize a loss. It’s important to maintain perspective on the risk as first priority.

5). Wait patiently for cupcakes at the end – Investing takes patience and a willingness to be disciplined. There must be goals established and when those goals are met, the sweet reward is certain to follow.

It was tough for the kids to focus on the lesson at hand with treats waiting; the children eventually learn that shortcuts to the baked goods don’t exist especially through my lessons! It’s similar with investing. We too, as adults, want our dessert first or seek to get rich quick based on shortcuts.

Ostensibly, when the market are not cooperating, back-to-basic strategies like saving more, decreasing debt or extending the time needed to reach a financial goal are usually the best.

Featured

Interestingly, many parents find it awkward to discuss stock investing, especially with their young children. Some adults don’t feel confident in their abilities to do research. What I’ve discovered is the discussion with young children actually helps less confident parents become better stock investors.

The conversation raises the bar for teacher-parents and the children willing to learn.

It’s a win-win.

There are several milestones to reach. The adventure begins with these simple steps to consider when it comes to engaging the children.

Random Thoughts:

1). Build excitement – Creating passion around the investing process is important. Begin with a dialogue around the children’s brand loyalties (and they start at an early age). When I was young, I drove my parents crazy: I always “needed” the latest Mattel’s Hot Wheels car or Hasbro’s G.I. Joe action figure. I would only eat Kellogg’s Frosted Flakes, not the store brand.

So, what products are your kids passionate about?

Create short-term activities to build interest. Come up with a deadline for completion. For example, have the children begin and maintain journals of the products and services they like or use. Have them track the prices of those items over the internet or when you head to the stores. Remind the kids how the family is excited to hear about what they’re thinking and plan a family gathering around the topic.

One family created a big event around the journals. They had the children select their own notebooks and personalize them with money-related and other types of stickers. The kids paid for the supplies out of their allowances which created a stronger connection to the project.

2). Organize a family discussion – Once the children share their information at a family gathering, expand the discussion to include the products and services the family purchases or uses on a consistent basis, say at least twice a week. From soap to shoes, batteries to bandages – leave everything open for investigation. Nothing is off-limits. Now, you’re building a research list!

3). Watch your words – I’ll never forget when my uncle who was a specialist on the floor of the New York Stock Exchange, explained how I had the ability to own part of a large company. I was hooked. Wait: A poor kid from Brooklyn can own a piece of McDonald’s?

How does that happen?

The language used around stock investing is important to help the kids gain healthy perspective and a sense of pride in their selections and the investment experience, overall. The phrase “buying a stock,” is confusing when compared to “ownership in a company,” which in essence is what you’re trying to help the children embrace.

The concept of “stock” is nebulous for the younger ones to comprehend so it’s best to keep the language simple. Using words to connect ownership to investing creates a long-term investor mindset. You don’t want the children to focus solely on stock price movement; it’s best for them to strive to build discipline by focusing on the long-term value of a business – and all because you provided the perspective.

4). Begin with the concept of sales – It’s a good idea to introduce one simple concept before you begin specific stock-research homework. I’ve found kids relate well to the concept of sales. Whether you’re talking lemonade, girl-scout cookies, or school-related fund drives, children have an uncanny ability to understand that sales are positive and can lead to personal reward. It’s the same for a business. Generally, the more goods or services sold, the more favorable it is to the stock price over time.

You don’t need to work through these initial four steps alone. Partner with a financial advisor to facilitate the discussion or utilize books and other resources to jumpstart the process.

I recommend the book “Growing Money: A Complete Investing Guide for Kids,” by Gail Karlitz and Debbie Honig. Easy to understand and designed for children ages 8-12.

Want to engage the kids about several money concepts? There are 7 great money apps for kids reviewed by NerdWallet including my personal favorites – Virtual Piggy and Bee Farming.

You don’t need to wait (like I did) until you receive verbal cues from the kids to begin the engagement about investing.

You may never get them.

Even as early as age nine, you can begin a dialogue.

In the next report, I’ll take the investing discussion to the next plateau.

Until then, begin the conversations, start the journals, ignite the passions.

Featured

Baby Boomers are known for their penchant for spending. They were not hesitant to take on debt to enhance their lifestyles as they built successful careers and accumulated assets.

The post-financial crisis Baby Boomer retiree is constantly rethinking how to direct discretionary dollars or their “fun” money.

I recognize and document the changes I observe: There’s a deliberate thought process behind discretionary spending. The mindset is a clear path to personal enrichment and a generous nature when it comes to providing knowledge and positive experiences to those they love.

Here are a few of the more interesting random observations:

“We crave memories.”

A majority of Baby Boomers are directing discretionary dollars toward experiences, especially with close friends and former business associates. They would rather focus on creating memories. The desire to make large-scale expensive purchases is on a very noticeable decrease.

There’s a passion for atypical trips – wine tours in exotic locations, extended-stay vacation spots, off the beaten-path locales where time is made for conversation. Physical and mental challenges are important, too. Hiking, skiing, scuba diving, mountain climbing are high up on the bucket list. Learning new skills like painting or ethnic cooking have replaced a desire to own goods. If anything, Baby Boomers are releasing the shackles of material goods and downsizing.

And they’re on to something: Research by Elizabeth Dunn and Michael Norton, authors of the book “Happy Money: The Science of Smarter Spending,” outline how spending money on experiences can stretch “happiness bucks.” Memories outlive the short-term excitement of a purchase like new automobile.

An emerging trend has been the growing demand for off-site wine storage venues. Here, Boomers with a passion for wine can house their inventory in a climate-controlled environment and have access to comfortable lounges to share their collections with friends and others who share their passion. Those who participate in this activity advise me it’s more about socializing and the overall experience than the wine.

“We seek self-awareness.”

Baby Boomers are passionate about learning more about themselves and willing to spend money to do it. Much of their mental resources and daily hours were spent building long, stressful careers and raising families. Several have expressed to me how much they regret not spending more time going further down a spiritual path. An increasing share of the discretionary budget is being directed toward classes, books and travel that result in methods of heightened self-awareness and inner wellness.

Boomers have experienced hardship within their households; they know of immediate family members and close friends who have gone through difficult financial episodes. Striving for inner peace and ostensibly communicating what they’ve learned with others is of greater important than showing off new, expensive toys.

“We want to share with family.”

The Boomer desire to leave a big inheritance is not a priority. The trend is to share the wealth in retirement, especially through activities that include family. The addition of travel with children and grandchildren is a popular goal and from a financial planning perspective, has morphed from a want or wish to a strong need.

They’re called “multigenerational vacations.” Whether cruises, theme parks, or scenic road trips, a strong desire exists for Baby Boomers to be travel partners with loved ones. And picking up the tab for the group is not a concern. They possess a desire to etch good memories in the minds of their families and to actively participate in the fun. They seek to leave a strong presence after death. A living legacy.

Boomers are readily sharing newfound hobbies with family. For those on a more limited budget in retirement, pre-scheduled gatherings to show off cooking skills are popular. Any activity that creates an opportunity to bond with family (and they don’t need to be over-the-top expensive) is approached with the same energy retired Boomers applied to building careers and businesses.

“We are collectors of unique items.”

Unique collectables are popular with Boomers. Scouting resale shops and antique stores have become a formidable leisure activity in retirement. The most popular collections are tied to vintage pop culture products owned or remembered as children.

Baby Boomers are diligent when they purchase collectables. They’re patient and will wait until the “perfect” item crosses their path. Since they disdain clutter, homework is important, and they’re extremely selective. Budgeting for these purchases is important, too.

Toys, magazines, comics and vintage books from the 1950s through the 1970s are the most prominent collectables.

Roughly 25% of discretionary budgets are allocated to unique items -up 30% from five years ago.

The spending behaviors of Baby Boomers in retirement are fascinating to observe and document. They’ve changed over the last five years.

As a Boomer retiree said to me recently: “I’m focused on my return on life.

Once it occurs you can’t go back. The structure as it was, can no longer be trusted.

And among the rubble.

You rebuild.

And it takes so much of yourself.

You’re weaker for the rest of your life.

Just like that.

Boom.

On the other side of the devastation.

You remember what was lost in the blast.

And in your dreams, you long for some of what you had.

Before the wounds.

There was.

Stamina. Determination.

Sanity.

Nothing is as it was.

Right down to the senses.

The blue on your tongue tastes yellow.

Out from the rubble of a structural breach.

The lens from which you view the world, yourself, are strained; it’s hazy around the edges. Although your vision, determination, direction was never clearer.

You trudge forward. Focus on re-calibration.

Galvanize. Work with what you got.

Execute with a new instruction manual.

Fuck.

What choice you got?

In the span of a lifetime, I pray your structure is never violated. If so, I hope you’re close to clearing the debris and eager to start over.

For the breached ones, the invaded ones, the violated ones, here are a few.

Random Thoughts:

1). Stack as many odds in your favor as possible. Take a realistic, objective inventory of what you got left to fight with. You’ll eventually learn your own ways to work around the break in structural integrity. Guard yourself at all times: Say no more often, immediately release those who drain energy, keep vigilant or aware of what can erode the structural integrity that remains. Do whatever is necessary to preserve mental and physical attack as another battle could end in mortal disaster for you.

2). Recognize the warning signs of attack. Get your head connected to your gut and take quick action. I knew deep down, attacks were possible, but I fooled myself into believing all would be OK. When it comes to war on structural integrity, your instinct can feel it coming. It’s an internal awareness mechanism you should not ignore (like I did).

3). Make a list of the things you must accomplish daily to rebuild. I deep breathe 5 minutes every morning; I apply positive self-talk to fight fear and worry. I work out to the point of vomiting. There’s a continuous, obsessive focus on healing and protecting the wounded area. The steps will be different for you. Just start something. Create healthy daily habits. Each action will replenish, protect and compensate for the damage. Most important, you will prevent the weakness from spreading.

4). Never forget how you left yourself open to blind siders. You failed to stay alert. Most likely 20% of your life force escaped through the cracks. Gone forever. You cannot afford another hit. It’s all about preservation, now. People, entities will seek to harm you to protect themselves. It’s survival of the fittest gone mainstream. Don’t be blind. Remove selfish ego-based people and thinking from your life. Create a circle of protection which contains those individuals, teachers, activities, foods, conversations that nurture you. All the rest need to be cut out immediately.

5). What can breach the integrity of your financial structure? You have minor children and no estate plan, no legal will. You depend on credit cards for emergency expenditures, you don’t carry adequate life insurance or disability coverage, you co-sign for loans. It’s a matter of time before your money will be attacked.

Believe me.

I’m not back to where I should be.

I suffer from this recurring dream; I’m standing deep in a yellow pea-soup colored fog. The sound of a roaring train fills my ears, raises my blood pressure and then rolls over me.

Featured

I was kneeling. Looking up. At a shell. A skull with eyes. At ninety-seven pounds, mostly bones. Slumped in an ornate, chipped wooden chair I still own and stare at today. He still commands it. Owns it. I can’t sit in it. After all these years. The chair frightens me.

When he spoke, I remembered happily. I recalled the power. His presence. His flair. How strong he was. Even after cancer took 70 pounds away. Like a thief. Draining him. He was in a three-piece suit four sizes too big. We couldn’t alter clothes fast enough to keep up with the weight loss.

Yes,” he said. along with a tear. His. “I’m done.”

Water rolled down his face. Landed on our joined hands. I put my head in his lap. He stroked it. I told him I loved him. I didn’t want him to go. How can I convince him to stay. To change his mind. I would do anything. Anything. Wasn’t my love enough to keep him here?

Told me “it’s no big deal. You’ll be fine. You’ll see.”

Huh? I wasn’t going to be “fine.” I couldn’t “see.” It was tough to ask the question and receive the answers I knew I was going to hear. But it was nothing less than I expected. I then understood how I needed to be strong. To help him move forward. Because I knew he wasn’t “done.” He had more to do in this life. It was a time. A snapshot of sweet surrender and acceptance. Still. Quiet. Like God was taking a photo of a moment for me. There was nothing else we could do. And surrender and acceptance are on occasion, not easy. Sometimes surrender and acceptance rips your heart out.

Through life you’ll need to sever lifelines to those who hold power over you. Those you love more than anything. Yet, they’re not there. Or here. And you can’t move forward. And last night I had a dream about dad. What he said to me that day in 1993.

His one last thought. Because he always had the last thought. One lesson I’ll never forget.

He said: “Sometimes love isn’t enough.”

I literally carried him down the stairs. He let me. I know that was tough for him. Tough on his pride. But he let me. Because he knew I needed to. He spent years being the strong one. Carrying me. I rested him on the couch. The vigil began. He wanted to die at home. I made sure nobody would dissuade me from the mission. I held his hand as he slipped into a coma.

On a frigid, gray February day before he spent 48 hours dying on a couch, dad severed his lifeline to save me. Made me feel ok about his inevitable exit. At least he tried. He even worked a full day at the office before coming home and slumping in that damn chair. The death chair. Like it was no big deal. Close some car deals. Drive home. Die.

“I don’t want you to be done.”

But sometimes love isn’t enough. And you always want love to be enough.

Random Thoughts:

1). Some lifelines get severed carelessly. Why must they? What the hell stands in the way of happiness? There are people we should engage as friends, lovers, mentors, yet sometimes love isn’t enough. Respect isn’t enough. Something unspoken hangs like a deep cancer you can’t cut out so you decide to cut off. It’s easier – but is it the right move? Do you sit in the chair and say “I’m done?”

2). Some threads need to be severed so both parties can survive, move forward. And it’ll rip your heart out because you know the sever feels wrong. You lose a part of yourself when it comes to this cut. This one is gonna hurt. It’s going to take time to heal. But sometimes, love isn’t enough and it needs to be done.

3). On occasion the attempt to sever causes reflection. Do you really want this person out of your life? Is there an illness, an internal hemorrhage that can be healed? Is there some feeling other than love which blossoms health and unity? Or do you allow release? Do you move a person you love to another plane?

4). Be prepared to sacrifice yourself, go out on a limb, be cold. For resolution, or severing you’ll need to “prep” the area. Not easy. What is the catalyst that gets you to this point? It’s different for everyone. Dad knew when it was time. After all, it was going to be fine. No big deal, right? At least that’s what he said when I know it tore his soul to say what he did to me. He appeared strong, almost defiant, flippant? Just so I would have the balls to move forward. An ultimate sacrifice. Sometimes love is enough?

5). Don’t sit in the death chair. Until you’re ready. And you may never be ready. Surrender isn’t easy. Acceptance is worse. Understanding you have too much debt, or you suck at saving, or you can’t handle investing in stocks, or you got duped by a financial professional promising unrealistic returns, is a good first step. Accept and improve.

It was 1am. Dad woke out of his coma. Briefly. He moaned. The whites of his eyes turned blood red. He spoke to me one last time. He said – “you’re going to be great.”

I whispered in his ear. I had all these memories I need to share.

“Remember when my green Schwinn with the banana seat was stolen two hours after you bought it for me? You came home and bought me another one.”

He grimaced. Maybe he smiled. Then he was gone.

He stopped breathing. I could still see the movement in his chest. It was his heart.

It was still beating. Fighting to stay. His body moved with the rhythm of it. Because of it.

Featured

We were free. Moving quick in a white hot breeze. 1977. When the world flew by in lime green.

Slit through a black bowel of public housing. Deep in the middle of the aged carnival colors of blueviolet, aquamarine and bisque. Coney Island. A narrow way forged between the metropolis, slick brown with rot. The summer New York heat penetrated, bounced from dead, white alley cats forming a yellow haze floating neon pungent sluggish slow in still heat. Bright orange, with a burst of unhealthy steel-gray around the edges, like a healthy pink hue that hesitantly abandoned its soul, was there too. Cats and garbage rotted just that way in July. In 1977. In Coney Island. I remember.

The odor scorched the outer part of our pink nostrils until they flared red. But we didn’t care because this moment was designed to be fleeting. The clear blue of escape from a place we should not have been, was near. And as long as that moped motored us out in one piece, alive, all the Sunday ritual – staring at the newly-painted off white walls behind the rich, marbled altar of St. Simon & Jude’s Church would have been worth it.

Until.

Boom! Black.

The lights went out. A deepest black seeped in from the edges. Beige smoke rose above. From everywhere. It suffocated us like a color. Purple maybe. Stopped us dead. Frozen.

“If you don’t get in the dumpster you’re getting raped and I’m getting robbed,” I said. Heels off. She moved. The color of imminent danger was crimson with dark-red daggers.

We dove boldly into the acrid stench of the mix. Eggplant in color, wet, with sticky blotches of yellow green. The lime-green Puch Moped that was to take us into the wild blue now secured behind the jungle-green metal coffin for the discarded muck public housing didn’t want. Too much green. We puked. The gagging color of cloying hot crimson arose in our noses and throats.

A city summer. In the blackest of blackouts. 1977. I remember the gray shades of memories. The colors brought me back. To an alley. When looters almost discovered a boy, a moped and a girl’s saturated skin with Love’s Baby Soft (always smelled cotton-candy pink to me). All this clear vision from a lone lime-green bicycle I barely noticed. In a driveway. Yesterday. In Houston, Texas. A million miles away – faded into a lemon chiffon of time.

Oh the colors, the colors. Perfect.

Colors have the astounding ability to anchor you back to a time and place for as long as you live. No matter how far to the past you venture. Colors are seeds that blossom the past to the present, immediately. Sort of like songs. Sort of like a person you love, or cherish. If you remember the colors, you’ll know what you feel about a moment is true. And real. Even when others doubt you. Even when you doubt you. The colors make it true. And true is slate blue.

Random Thoughts:

1). How will colors conjure up the past? Today I re-lived the memory of a first dinner. I smelled the thick tapestries of dark & tomato reds. The rich browns of hair and delicate tan of lines, of form, of grace. I’ll never forget the fire-brick colors of what ignited in mind and heart. The reams of gold in the conversation. I re-live those pigments every day.

2). Red & green are the colors of money. When stock markets are green, as they have been since the fiscal cliff (version 1) concluded, I use green to trim growth and profit. When there is red again, a trickle of crimson in the streets, I’m motivated to buy. Use the reds & greens to make smart financial decisions.

3). How will today’s colors form your future? Be careful with the colors you use today to form the thoughts that move you forward. Today I’m staring at coral, firebrick, and forest green from my windows. All soothing, positive colors to me. I’ll make it my business to avoid true dark shades today.

4). What colors will propel you to thank someone today, love someone, be grateful for a communication, a note, one positive word. Close your eyes. Think of those colors. Shamelessly relive the good memories tomorrow of how you changed someone’s attitude. For the better.

Featured

Christmas reminds me how relationships, like antique glass ornaments, can so easily shatter. Shiny bright one day, swept up in a Dyson the next. As if the sparkle never existed. Unfixable.

The systemic problem with Christmas is it stirs ancient thoughts and ignites the mental bias called anchoring. I dare you to gaze at a tree ornament that you’ve unpacked every year over the last ten (or longer) and not recall “the moment.”

Such strong feelings. The weeks up to Christmas drain me like walking in heavy boots through 5 feet of wet snow. You recall ghosts of holiday celebrations past. Decades merge; 1982 is a freaking blip ago.

The weather the day you first hung the ornament from the artificial Christmas tree; you re-live that, too. The eye color, hair shade, smell, of the person who bought that holiday trinket to make you smile; now the damn thing has a life of its own, and holds a wealth of memories you would sooner forget. But you can’t. The person who bought it is either missing (by choice), dead, or probably has long forgotten the purchase (also by choice).

Admittedly, most of the year you don’t think about it. Until..

You resurrect decorations from the yellowed plastic tomb stored in the garage. From a container marked “CHRISTMAS CRAP.” Then you’re back in the moment and usually it isn’t good. Oh, you can throw the shit away, who would care? But you don’t. Sullen, you hang it again from a tree branch. Another year.

Stab me with a candy cane, it’s fine: I can take it.

This year after exhuming a memory, I lost track of the day. It was silly; I realized I had been sitting on the dusty floor of my garage for an hour and a half. Lost in space, missing time, stuck in “the moment.”

Awww

Even cardboard can pull the past into the present. At a friend’s house recently, a collector of vintage kitsch, a flood of past holidays washed over me. There in the corner, looking as new as the ancient day it was originally unfolded, was a Christmas adornment I haven’t seen in at least a decade.

Funny, when I saw it I immediately became mired in a tinsel-laden time warp. I went speeding through holiday backroads; exiting at 1972, the year I first admired my own cardboard and electric (what a lethal combo),

Fireplace!!!!!

It was a lousy Christmas. My mother after a week-long binge of booze and pills came home from God-knows-where, focused on the fake Christmas tree I just finished decorating. She picked it up from the middle pole and like some form of petite, brunette-elf weightlifter, flung it out our third-floor living room window. Graceful and horrifying at the same time.

I think there were like 6,000,000 lights secured around this thing. In fact, there were so many light sets attached that when the plastic-pine cliff diver advanced from the window, one of the light strings got caught on the way down causing the tree to swing back and forth about 10 feet from the ground like some type of sardonic holiday pendulum.

Two days after, a favorite cousin visited. A savior of sorts. He brought the fireplace along with small, wrapped gifts. On December 27, I had Christmas revisited thanks to Michael. We put together the fireplace, secured the lightbulb behind fake flames. It might as well had been the real thing. The warmth was real. A cousin made my holiday.

I never forgot.

Maybe good things come out of Christmas memories after all.

Random Thoughts:

1). Tell People you Love them. Now. Today. Even when they don’t feel the same. Even if they walk away. Even if they don’t respond.Today is the day to tell them exactly what they mean to you and you’ll be there for them because your heart and soul can’t change. It won’t change. Don’t compromise.

2). Christmas is not a day, or a holiday, it’s a mindset. The harsh glow of bad memories are fine even if they pierce like extra-pointy tips of holly. The rotten ones are tough yet you must look beyond them and work hard find the lessons that move you forward. Embrace what was and analyze how it made you the person you are today.

3). In times of despair, who will save your holiday? Be open to the signs. Be open to those you’ve been closed to before. You never know the lessons they’ll teach you, the memories they’ll create for you when you unpack aged ornaments next Christmas.

4). Now is the time to tie up loose ends. With people. With money. Step back. Foster ties with those who create energy, and cut away the ones who take it away. On occasion, you’ll be the one who’s cut and never truly understand why. There’s a humility, a frailty to being cut. It feels hopeless. Like a Christmas tree cast from upper floors. Then, out of nowhere – hope emerges. What a surprise.

At the end of the year, it’s a good idea to double-check the beneficiaries on retirement accounts and life insurance policies. It’s also an opportune time to decide how you’re going to increase your contributions to retirement plans or work to pay off credit card debt in the new year.

My middle name is Michael.

I demanded my mother have it changed after that Christmas in 1972. She obliged out of guilt. It was a way to always keep a special cousin in my heart.

After losing contact with Michael years ago, I found out that he died in 2008.

Alone. From AIDS.

In a motel room in upstate New York. He was dead a week before they found him.

I wasn’t there. I never knew.

I missed my chance to tell him how much I loved him. How much he saved me that day.

I sent him a message from my heart, as I stared, lost in another place, at a friend’s cardboard fireplace.

Featured

It was a cavernous black-on-black metal beast out of Detroit. A 1969 Cadillac Convertible with slick leather seats. With each turn, lane change, interchange between brake and acceleration, my little body was slung from side to side in the backseat (we weren’t fans of seatbelts back then) like an amusement ride just for me.

Every year, it was an adventure I looked forward to. A chance to escape the urban filth, the smell of incinerated used Kotex pads, the endless mounds of dog shit. A daddy/son adventure.

To upstate New York.

Where trees survived in packs and the air smelled sweet. The Catskills, specifically. The plan was always the same: First, the Catskill Game Farm (now gone), then Carson City (gone too), and last, a small retail establishment named “Roy’s,” which only sold stuffed animals.

Hundreds of them. I’ll never forget behind the front plate-glass window sat a monstrous black stuffed gorilla with a five-foot yellow banana. And I mean huge. With arms open wide, this cloth beast spanned the entire length of the store.

I couldn’t sit still for the entire trip. I loved to read the billboards, especially the quirky homespun wooden relics as we traveled farther north. It was only a matter of time before the iconic Catskill Game Farm billboard appeared. I mean it was “America’s Greatest Zoological Playground,” for God’s sake.

The radio stations would ebb and flow in on crackles and frequency farts. Most important was dad to turn up the volume when my favorite song hit the airwaves. It was a song my dad hated. It was a song Brooklyn hated.

“Beneath this snowy mantle, cold and clean.”

“What the fuck is this kid listening to?” Dad.

Anne Murray sings again in that memorable, soothing tone:

“The unborn grass lies waiting, for it’s coat to turn to green.”

“Oh, I’m changing this shit!” Dad again.

It was a song my friends hated. It just didn’t belong in an urban setting. But to me, it represented something clean, natural, open.

Like when I watched my favorite early Saturday morning television program, “Agriculture USA,” a show about farming that unnaturally appeared on New York City 6AM television.

“The snowbird sings the song he always sings…”

“What the f**k is this snowbird?”

And now we’re swerving. In a tank. On a dysfunctional family adventure.

Dad was always up early. He sought to be out the door before mom. He’d walk into the living room. See me sitting cross legged, staring up at the old black and white TV screen, watching the farm report.

“Who the hell are you? You don’t belong here.”

He never meant anything bad by it. I sort of knew that. And he was correct. I never felt like I belonged in a dirty city. I hated people living on top of people. I longed for something more quite, desolate. Even at six years old I sought escape. Dad was indeed correct. I often wondered if God misplaced me. Must have been some celestial joke.

Oh, the song: It was “Snowbird.” Lovingly recorded by Anne Murray in 1970. Written by some dude in Canada (where I always believed there were lots of trees).

The opening was distinct. Later I discovered it was an electric sitar. Soothing.

The first lyrics. Hopeful. Let’s play it again. Or as a DJ on WABC radio in New York would coo in a broadcast – “Let’s hit the instant replay!” Exciting.

Cold and clean. Not dirty and hot like the grime on a New York City street. No dog crap in “cold and clean.”

More refreshment. Get me out of here:

Spread your tiny wings and fly away.

And take the snow back with you where it came from on that day.

Yes, spreading my tiny wings would have worked.

Flying away would have been terrific.

Random Thoughts:

1). Our souls must be from somewhere else and occasionally dropped into the wrong vessel. It took 40 years for me to be comfortable in my own skin even though I believe (still) it was not my own. Who has mine? Please contact me. I’d really like it for my second half.

When your country spirit is placed into a city kid or vice versa, shit is gonna happen. Your self esteem is going to be battered. You’re going to be on the outside looking in most of the time. And then it happens. You’re grateful that you’re a square dropped into a circle.

The experience formed something unique, a way to interpret life different from everyone else’s. It gave you the appreciation of people’s faults, to see the beauty in them. If you were “misallocated,” have you become aware of your gifts, yet?

2). You’ll be a better investor. If you’re comfortable in your own or someone else’s skin – you’ll better understand your very human pitfalls and realize how they will kill your investment returns. Turn your clean virgin snowbird into yellow and black snow; nature’s afterbirth stuck to the bottom of a NYC taxi.

Individual investors aren’t “dumb,” just humans not equipped to handle the skin of investments. Morningstar, the mutual fund “gurus,” completed a study that fund investors are indeed good at selecting funds (imagine that). They just are not “in their own skins,” when they allocate. In other words, they consistently buy HOT categories and sell COLD ones. Can you believe it?

We like hot and sexy instead of cold and sterile? When it comes to investing some of your best returns come from COLD. And cold is cleansing.

3). Your home is your home. And that home is in you. Until you’re comfortable with who you are in the housing you’re given, you’ll never feel secure, confident or stand for the people you love or the convictions you hold dear.

Never.

Those Catskill locations are long gone.

Carson City, a simulated wild west town, is now home to a bunch of condos.

Yet somewhere in a room, in my store of memories in whoever’s skin I’m in, those places are as real as they ever were.

And even if the rightful owner of my shell comes to return it, there are some things I refuse to give back.

Reality alert: As humans our tendency is to complicate everything, or close to everything. This penchant to complicate festers the longer we live.

Once I believed that with age came wisdom and clarity. Now, I’m not so sure.

With each passing year, the build-up of negative experiences saunter like heavy suffocating shadows.

We over-stuff our heads with negative episodes of the past. Personal baggage pressed at the seams appears at the ready to spill poisonous contents on innocent poor bastards thus destroying any hope of connection.

Facebook has a blocking feature where you can make people quickly disappear.

Blocking is a healthy addiction. Too bad we can’t find a way to permanently block debilitating thoughts. At least long enough to allow another to share a comforting word without skeptically searching behind it for a motive. Too much searching. Not enough listening.

We are overstimulated and overstimulation leads to overthinking which culminates in complication.

Opportunities to connect with a clean slate, with minimal if any expectations, are rare.

The worst part?

Our inner sparks go cold. Nothing excites us anymore. We think smaller. We can no longer find the humor. We lose hope.

This will be my first Christmas without a tree. Oh, I own one. Purchased a new eight-foot evergreen beauty with colored lights from Wayfair last month. Surprising to me, I have very little motivation to release the damn thing. Like opening the box means imminent doom. It’s a warning sign that something isn’t right. One I won’t ignore.

I think about how our brains shrink as we age. Perhaps that’s the reason I’m just not feeling the tree thing this year.

It’s all about perspective and not falling into a dark well with a bottom that never follows through. Talk about perspective – I know a few males who can’t ‘get it up’ any longer and they’re happier as hell. Happier than they’ve ever been.

Having sex, thinking about sex, working to get sex, steers precious mental resources away from important, life-changing ventures. So they tell me.

One head may be dead but the other – Teeming with ideas?

Amazing what happens when the bar is raised high from the low of which you focus.

Simplicity in a world dominated by narcissistic grandeur is a daily challenge. One must work at it. Stay focused. Of course, it’s healthy to have a positive self image. However, there’s a deteriorating marginal utility to self-adulation when every photo on your personal Facebook page is a selfie (and they all look the same after a while, BTW).

In the social media age, seductive headlines, each inflammatory phrase, is deftly crafted to over-stimulate the limbic system of the brain, the amygdala, or plainly, the primal ground-zero of personal fears.

Fears that we’re not the smartest, the prettiest, the sexiest, the most popular; that our dicks are too small, asses too wide; our politics are rot and conflicting opinions don’t count for shit. Today there exist endless algorithms of headlines which gorge negativity.

Social media obfuscates how we truly measure up with little understanding why we try so hard to do so. We’re constantly competing, seeking something (or someone) smarter or betting looking, always striving to one-up. Instead of competing with ourselves, we’re competing with the fabricated, select Facebook lives of others, most of them strangers.

It’s an anxious, mystifying state of purgatory. The hamster wheel to nowhere. No rewarding endgame. Just exhaustion.

At the end of all the mental bullshit gymnastics, I wonder:

What the fuck do we accomplish?

As I purposely tighten up my personal space and establish new boundaries which includes a reduction of social activities, purposeful quiet has allowed me to re-group and take inventory of the physical, mental and spiritual contents of my life.

Calm has finally arrived after a prolonged stint in a mentally abusive relationship, the worst I’ve experienced with another human; a prolonged period of anger, mourning, and ostensibly, apathy, blissful apathy.

It’s also been an amazing period of career growth. Embedded throughout there has been this yearning, insatiable desire for simplicity.

In a plugged-in 24/7 world that seems to thrive on complexity and drama, I cogitate over simplicity as the true path to dissonance reduction. Inner quiet emerges from disconnect, not the connect.

Achieving small, however you define ‘small,’ allows control and control creates choices that lead to fulfilling accomplishments. At the least, your perspective won’t feel “blocked” or “polluted” by the miasma of complexity.

Listen, people are catching on to the concept of simple. It’s not a fad. It’s becoming a way of life for a generation. Oh they’re online connected but ironically they’ve found the way to use it to their advantage, I guess.

Forget Millennials. Consider Gen Z or those born after 1998. They strive for small yet enriching lives.

According to Goldman analysts Robert Boroujerdi and Christopher Wolf, Gen Z is more entrepreneurial and pragmatic about money,

“Raised by parents during a time marred by economic stress, rising student debt burdens, socio-economic tensions and war overseas, these Gen Z youths carry a less idealistic, more pragmatic perspective on the world.”

What are 4 ways to live a simpler life?

Random Thoughts:

Downsize

Living lavish appears great in movies. In reality, not so much. Big mortgage, big car payment, big liabilities in general, are certain to curtail the breathing room and proper perspective to allow consideration of life-changing choices that can lead to enriching wealth however wealth is defined.

Generally, people will stick with what feels safe such as a job they dislike, solely to meet financial obligations. They may even compromise their personal ambitions, seek happiness in the very possessions that chain them, prevent them from achieving personal and financial self-fulfillment.

Downsizing begins in the psyche. Start small. Take inventory of material items no longer used then release them. If you must purchase a durable good like an auto, exclude models with unnecessary bells and whistles.

Need a kitchen appliance? Basic models freeze, clean, bake at 30% less; seek out floor models or slightly dented. I’ve always been amazed by consumers who are turned off by an undetectable scratch on a refrigerator door.

Downsizing will help you reclaim some of the rhythm of life choked off by a complex, debt-fueled existence.

Cut

The wrong people can chip away at your sense of well-being like a cancer. Complex reasons exist for keeping around those who treat you badly, cut you down or make you feel rotten about yourself. I won’t go into them. Look back and I’m certain you can come to your own conclusions as to why you stay longer than you should. We’ve all gone through this.

Cutting people you dislike out your life is one thing; removing those you love because their energy isn’t healthy is a supreme paradox.

Those who thrive on drama or negativity battle a special kind of demon. Usually, due to a great loss or void in their lives their perspective is closed, or off kilter. They’re not out consciously to cause harm.

Frankly, more of the damage is to themselves; their release of energy or what I deem the “after burn,” is what those close to them feel. It’s like standing near a blazing fever or taking in the bittersweet odor of a person close to death from metastasizing cancer.

The easiest path to a cut is simply, avoidance. Frankly, under the guise of being busy it’s plausible to rarely be in the same place at the same time.

Regardless of the method, to remove people you like or possess no-ill will is a difficult conscious choice to cleanse the negative and establish fresh boundaries. It’s the saddest of breaks, however it could be necessary.

Journal

Self-reflection with journal and pen (not computer), even if it’s only 15 minutes a day, is a healthy way to blow off steam and deal with the energy-draining trials of the daily toil.

Whether it’s author James Altucher’s daily habit to generate 10 ideas a day on a waiter’s pad of all things, documenting a morning ritual or short sentences of gratitude, writing is a healthy addiction that provides balance.

Abstinence is a discipline even if it’s not a forever deal. An extended period of isolation or limiting activities which fog the mind, is a self-nurturing act.

I have a friend who for three months a year abstains from alcohol, fried foods, staying out past nine and updating social media. It’s her line in the sand. A time of rejuvenation and renewed purpose. Those months are not boring, they’re filled with organization, writing, physical self-improvement and documented reflection.

You know what complicates lives?

Pondering over endless brands of paper towels and toilet paper that choke up long aisles at retail stores.

How much fluff and fragrance do I need to wipe my ass or clean counters? Also, keeping up with every social media channel and figuring out why we take on such a task is beyond rationale.

Recently, at Best Buy with my daughter I was overwhelmed by 4 rows of washers and dryers. Waves of whites and stainless steel blocks vying for consumer attention. Front load. Top load. Multiple dials, buttons.

Overall, I felt paralyzed and sort of stupid. When I need to replace appliances I’ll look to hire an appliance consultant to make sense of it all.

Am I launching a space shuttle or cleansing my briefs? You tell me.

Strange how with all the modern conveniences and innovations designed to make our lives easier, simplicity has been push-buttoned and dialed away.

Maybe ’tis the season let go. Get crazy: Don’t look for reasons to believe a person you recently met is going to disappoint like an ex or another asshole.

Set your expectations of others to zero.

Well, I’m feeling better.

I may put that new Christmas tree up after all.

Check with me next week.

Dedicated to my close friend Lori Pinder who searches and defines her personal simplicity every day.

Most of the books on BI’s list are not going to get you where you want or need to be financially.

Not today. Not ever.

I’m not saying the books aren’t fine efforts.

What I’m saying is overall they represent a single perspective, one side of the investing coin. A philosophy that doesn’t effectively work through every stock market cycle.

The philosophy of “buy and hold” or “buy and sleep” as it’s eloquently described in one of the books on my best-of list (Cocktail Investing), is not going to help you to navigate a post-Great Recessionary period muddied by unprecedented global central bank overreach, negative rate scenarios, 8 years of below-average global economic growth and the second loftiest stock valuation levels (based on real earnings) since the tech bubble.

The advice from BI fits secular positive market periods like 1982-2000. However, through history, positive or upward cycles conclude and are ostensibly replaced by (as beautifully researched in another selection,) flat or down trending periods that work off bull excesses.

You see. Not every long-term market move is positive. On Wall Street however, every market is a bull. On Main Street, that buy-side mentality will place your household finances in jeopardy.

Check the bottom of your shoes before going in. It’s a perfect cycle for them to stink up the joint.

Oh there are several tomes of wisdom. I’ve read all the books listed. Took notes. I did learn from them. I consistently read 10 books a year.

But through this market cycle, the pervasive wisdom of ‘buy and hold’ or ‘random walk’ where your portfolio trips and blows up your net worth, isn’t gonna fly.

You doubt me?

Ponder the following:

Warren Buffett repeatedly appears on BI’s list. I understand. Greatest investor of all time and all.

One problem. And it’s a big one.

It’s not realistic to think you can invest like Warren Buffett. It’s a romantic inclination. It’s what investors yearn to do but can’t.

Sure, you can prosper from an education in fundamental analysis – company cash flows, balance sheets, income statements, dividend growth, not chasing the hot investment flavors of the day. It’s called doing your homework and doing your homework is required.

In the brief period we’re given as investors, because we’re human – there’s a limited window of opportunity for appreciation. (Like 20-30 years if we’re lucky). Include the increased probability of a decade of below-average returns in stocks (our estimate is below 3%), and a set-it-and-forget-it mindset requires a wake-up call.

Now more than ever.

A new resource library.

You see, it’s close to impossible to match a human life (finite) with that of a market of stocks (infinite). Unless you’re Warren.

Think about it.

As Lance Roberts wrote recently:

“It is important to remember that we are not investors. We do not control the direction of the company, their management decisions or their sales process. We are simply speculators placing bets on the direction of the price of an electronic share that is heavily influenced by the “herd” that makes up the markets.

More importantly, we are speculating, more commonly known as gambling, with our “savings.” We are told by Wall Street that we “must” invest into the financial markets to keep those hard-earned savings adjusted for inflation over time. Unfortunately, due to repeated investment mistakes, the average individual has failed in achieving this goal.”

You don’t have a couple of hundred years like Warren Buffett who is investing not for just his lifetime, but for multiple shareholder lifetimes in Berkshire Hathaway.

So what if one of his investments doesn’t pay off for 30-50 years? He’s dealing with the luxury of that kind of time. The kind of time it takes to earn and book hefty market returns. This is not realistic for most of us. It’s a financial fairytale hawked as reality.

Thankfully, investors seem less receptive to the turd sandwiches they’ve been force fed when it comes to understanding how the stock market performs. It’s unfortunate too as this cyclical bull market we’ve enjoyed since March 2009, is one of the most despised I’ve witnessed. And I’ve been in this business for 27 years.

In part this negative sentiment is due to the continued lack of straight talk by pundits, an overhang from the pain of losses during the financial crisis (remember that?) and a painfully long (marginal at best), economic recovery.

So I share with you my library. My keepers.

A reading and learning treasure trove for the new world.

1). Investing with the Trend: A Rules-Based Approach to Money Management by Gregory L. Morris.

Wiley.

From Amazon: Investing with the Trend provides an abundance of evidence for adapting a rules-based approach to investing by offering something most avoid, and that is to answer the “why” one would do it this way. It explains the need to try to participate in the good markets and avoid the bad markets, with cash being considered an asset class. The book is in three primary sections and tries to leave no stone unturned in offering almost 40 years of experience in the markets.

Excerpt: The market from 1927-2012 was in a state of drawdown (loss of capital) for more than 95% of the time. In other words, the market was making new all-time highs less than 5 percent of the time.

Rosso’s take: Greg drags the mystical buy-and-hold unicorn behind the shed and destroys it. The book is comprehensive with data that obliterates the buy-and-hold myth and group think that has destroyed so many portfolios. You’ll be annoyed after reading this book. You’ll feel duped by a financial system that compels you to feel helpless. There’s more in control about money than you think, and this book will open your eyes -question your current portfolio management strategy.

Chris and Lenore focus on economics, demographics, psychographics, technology, policy and more. In other words, themes. Thematic investing. Their book allows you to tap into the flow and motivation for today’s consumer to spend and where they drop their cash.

From Amazon: Given today’s ever-increasing deluge of information, the average investor faces the challenge of sorting through the babble to decipher what it means, and learn how, where, and why they should be investing given the current economic environment and the uncertain future. This book provides an ‘off’ switch, helping readers apply an automatic mental filter to the incoming cacophony, to filter out only what they can use for smarter money moves.

Excerpt: Shifting demographics & psychographics shape and impact consumer behavior can force companies to make fundamental changes to their business to succeed. Identifying the root cause of these shifts, be they the fallout from a disruptive technology, changing consumer preference, or other pain point, helps you, the investor, identify companies that will profit from the pain as they administer their “soothing” medicine.

Rosso’s take: Talk about changing it up. How refreshing. The dynamic financial duo seek to help investors understand where demand is headed and then prosper from growing consumer trends. This book is an eye-opener if you’re investor looking to hook into the consumer mindset post-Great Recession.

3). The Choose Yourself Guide To Wealth by James Altucher.

CreateSpace.

From Amazon: We are living in an epic period of change, danger and opportunity. The economy is crashing and booming every few years. People are getting fired and replaced by computers and Chinese workers. The stock market crashes with regularity. Every “fix” from the government makes things worse. The Old World has been demolished… and people are desperate for answers.

This is the field guide to the “New World” we live in. You can play by the old rules and get left behind, or you can use these new ideas and become wealthy. This is not a book for the faint of heart. Read at your own risk, because sometimes the truth is hard to take.

Excerpt: “The Save Big Rule.” Don’t save small. Save big. Big is a worthless college degree. Big is a house. Saving 10 cents on a cup of coffee is a poor man’s way to get rich. There’s a myth that “saving a dollar is the same as making a dollar.” This simply is not true. It ignores the fact that you start off with money. If you start off with $100 you can only save $100 but you can make a gazillion dollars.

Rosso’s take: James as a dear friend and mentor changed my life. He’s not mainstream but he’ll get you to step back, question everything. He’s a dogma destroyer when it comes to ideas of building wealth and healthy daily habits that seek to preserve and nurture the greatest investment: YOU.

James Altucher is the Ralph Waldo Emerson of our age. I promise you won’t regret this one. I can’t promise it won’t get you thinking. At times you’ll shake your head in resistance as James breaks down deep-set societal rules of wealth building and encourages new ones defined by passions and creativity.

4). Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism by George A Akerlof and Robert J. Shiller.

Princeton University Press.

From Amazon: Animal Spirits offers a road map for reversing the financial misfortunes besetting us today. Read it and learn how leaders can channel animal spirits–the powerful forces of human psychology that are afoot in the world economy today. In a new preface, they describe why our economic troubles may linger for some time–unless we are prepared to take further, decisive action.

Excerpt: The term overheated economy, as we shall use it refers to a situation in which confidence has gone beyond normal bounds, in which an increasing fraction of people have lost their normal skepticism about the economic outlook and are ready to believe stories about a new economic boom.

Rosso’s take: Markets are math in the long term. From day to day, they’re a hot mess of emotions. Markets are not rational. They’re comprised of people doing impetuous acts to grow wealth, usually at the expense of others. It’s a war between buyers and sellers with prices used as weapons. Best to understand the animal, the push-pull, the primal spirits which feed (and sometimes anger) them.

From Amazon: A strategy to profit when markets are range bound–which is half of the time. One of the most significant challenges facing today’s active investor is how to make money during the times when markets are going nowhere. In this book, author and respected investment portfolio manager Vitaliy Katsenelson makes a convincing case for range-bound market conditions and offers readers a practical strategy for proactive investing that improves profits.

Excerpt: For the next dozen years or so, the U.S. stock market will be a wild roller-coaster ride—setting all-time highs and multi-year lows in the process. While the twists and turns of this ride are still to be written by history, the long-term, sideways “range-bound” trajectory has already been set by the eighteen-year bull market that ended in 2000. When the dust settles, only those who adapted their investment strategies to this range-bound market will have captured any meaningful profits.

Rosso’s take: Vitaliy is a master of long-term market cycle analysis (and they’re not always bulls). If half the time, markets are range bound, why does the industry ignore them or count them as insignificant? The narrative doesn’t fit well into the industry’s pervasive “set it and forget it” approach to portfolio and risk management.

From Amazon: Happy Money offers a tour of research on the science of spending, explaining how you can get more happiness for your money. Authors Elizabeth Dunn and Michael Norton have outlined five principles—from choosing experiences over stuff to spending money on others—to guide not only individuals looking for financial security, but also companies seeking to create happier employees and provide “happier products” to their customers. Dunn and Norton show how companies from Google to Pepsi to Charmin have put these ideas into action.

Excerpt: Consumers would get more happiness bang for their ITunes buck if they forced themselves, after downloading their music, to wait – at least five minutes, better hours, and ideally days – before listening.

Rosso’s take: Hey, you’re going to spend. Why not make the most of the experience, spend less in the process, yet gain greater satisfaction? Millennials seek experiences over stuff. How about you?

7). The Holy Grail of Macroeconomics: Lesson’s from Japan’s Great Recession by Richard Koo.

Wiley.

From Amazon: The revised edition of this highly acclaimed work presents crucial lessons from Japan’s recession that could aid the US and other economies as they struggle to recover from the current financial crisis.

This book is about Japan’s long recession and how it affected current theoretical thinking about its causes and cures. It has a detailed explanation on what happened to Japan, but the discoveries made are so far-reaching that a large portion of economics literature will have to be modified to accommodate another half to the macroeconomic spectrum of possibilities that conventional theorists have overlooked.

Excerpt: Although it has never been explicitly stated in the economics literature, the efficacy of monetary policy is based on a key assumption: the existence of willing borrowers in the private sector. Monetary policy loses all power if this condition is not met.

Rosso’s take: Sound familiar? It should. You’ve lived through 8 years of a sluggish economic recovery and monetary policy that has had very little positive effect on economic conditions. According to Bloomberg, close to 500 million people in a quarter of the world economy are now living with negative interest rates. Negative rates are a sheer act of desperation. A hallmark of how far monetary policy can be stretched, warped, morphed into ineffectiveness. And guess what? You still can’t be forced to spend. Or borrow.

Richard Koo understood the balance-sheet recession that hit the U.S. better than anyone on American soil. Those in charge still choose to ignore his sage commentary. Global leaders fell for unprecedented central bank intervention as the wholesale solution to decades-long structural economic problems. Go figure.

8). Wait: The Art and Science of Delay by Frank Partnoy.

PublicAffairs.

From Amazon: In this counterintuitive and insightful work, author Frank Partnoy weaves together findings from hundreds of scientific studies and interviews with wide-ranging experts to craft a picture of effective decision-making that runs counter to our brutally fast-paced world. Even as technology exerts new pressures to speed up our lives, it turns out that the choices we make––unconsciously and consciously, in time frames varying from milliseconds to years––benefit profoundly from delay.

Excerpt: An expert generally won’t need to delay a decision, but a novice generally should delay, as much as possible. The toughest part of the expert-novice distinction is that we can be experts in an area, with years of seemingly relevant experience, but then be confronted in the same area with a new twist on a decision that turns us into a novice. Not very many experts will admit, or even see, when they are novices.

Rosso’s take: Granted, a bit off topic. Or is it? Investing requires patience. Well, at least for those who follow a discipline, buy and sell rules. Let’s face it: Most financial firms are going to toss cash into the wind of the market because, well, it’s Wednesday and your account has cash in it. Little regard for current valuations. After all, you can’t time the market. Or is that just a convenient, overplayed excuse because financial representatives or investment specialists or whatever you call them, have sales quotas to fill, and financial firms have shareholders to appease? Your business is now booked. You’re history. Time to move on to the next target. Here’s a suggestion: After you finish this selection, recommend it to your broker.

9). The Misbehavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot.

Basic Books.

From Amazon: Mathematical superstar and inventor of fractal geometry, Benoit Mandelbrot, has spent the past forty years studying the underlying mathematics of space and natural patterns. What many of his followers don’t realize is that he has also been watching patterns of market change. In The (Mis)Behavior of Markets, Mandelbrot joins with science journalist and former Wall Street Journal editor Richard L. Hudson to reveal what a fractal view of the world of finance looks like. The result is a revolutionary reevaluation of the standard tools and models of modern financial theory. Markets, we learn, are far riskier than we have wanted to believe.

Excerpt: But whether guide or master, modern portfolio theory bases everything on the conventional market assumptions that prices vary mildly, independently, and smoothly from one moment to the next. If those assumptions are wrong, everything falls apart: Rather than a carefully tuned profit engine, your portfolio may actually be a dangerous, careering rattletrap.

Rosso’s take: Frankly, I don’t know where I would be without the work of Mandelbrot. He’s the reason I stopped drinking the financial services industry’s Kool-Aid. This selection is always within my reach. I refer to it often. Backed by rigorous analysis, Mandelbrot unwinds and exposes how markets flow (think gusts of wind). His work adds tremendous relevance to the field and exposes the underbelly of markets you’ll never hear discussed at major brokerage firms.

10). Irrational Exuberance 3rd Edition by Robert J Shiller.

Princeton University Press.

From Amazon: In this revised, updated, and expanded edition of his New York Times bestseller, Nobel Prize-winning economist Robert Shiller, who warned of both the tech and housing bubbles, cautions that signs of irrational exuberance among investors have only increased since the 2008-9 financial crisis. With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller’s influential argument that psychologically driven volatility is an inherent characteristic of all asset markets.

Excerpt: The efficient markets theory has been a fixture in university economics and finance departments ever since the 1970s. The theory has commonly been offered to justify what seem to be elevated market valuations, such as the 1929 stock market peak.

Rosso’s take: In September 2007, I asked many of the ‘experts’ at my former employer if stock prices were dangerously overvalued per Bob Shiller’s Irrational Exuberance. Naturally, I was told “no.” Bob Shiller tends to be early but always correct. Professor Shiller’s work is a haunting reminder of how hefty stock market valuations ostensibly correct and take your investments along for the plunge. Only to leave you spending the rest of your investing life attempting to break even. That’s not how the money management process is supposed to work.

Coming soon (available for pre-order):

11). Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America by Danielle DiMartino Booth.

Portfolio.

From Amazon: The culture at the Fed–and its leadership–were not just ignorant of the brewing financial crisis, but indifferent to its very possibility. They interpreted their job of keeping the economy going to mean keeping Wall Street afloat at the expense of the American taxpayer. But bad Fed policy created unaffordable housing, skewed incentives, rampant corporate financial engineering, stagnant wages, an exodus from the labor force, and skyrocketing student debt. Booth observed firsthand how the Fed abdicated its responsibility to the American people both before and after the financial crisis–and how nobody within the Fed seems to have learned or changed from the experience.

Rosso’s take: As the books is slated for release in February 2017, I do not have an excerpt to share. However, I couldn’t wait to pre-order. Danielle was inside the Dallas Fed, but she also maintained an “outsider looking in,” perspective that is crucial for the masses to understand.

A keen observer of how disconnected the Fed truly was during the financial crisis and remains distant from structural deficiencies that still inflict Main Street household balance sheets today, Danielle has a mission to expose the Fed and their economists for what they are: Clueless.

A frequent national media commentator and guest of our Lance Roberts’ radio show, Danielle is razor-blade sharp, passionate and a voice of truth. We’re fortunate as a society she decided to take on the mission to share her observations of the inner workings of the Fed.

The goal of my feverish reading habit is to immerse in the journey of financial wizardly less practiced by the frontline sales-driven asset allocators located at every Charles Schwab or Merrill Lynch retail outlet across the country.

Candidly, there’s enough mainstream financial ‘educational’ material available to lavishly adorn every waste dump on the planet. The written, glossy garbage stinks worse than dead fish full exposed to a west Texas August high noon.

Don’t be fooled.

It’s time to shake up your knowledge base.

I’m honored to assist you on your path.

And help you to question the rotted words of the masses.

Side note: I have learned the rhythm of markets by reading fiction. James Altucher advised me it would be so. After all, the price of a stock is what a willing buyer and seller agree to, the future growth potential of an underlying business, and educated guesses (a guess is a guess is a guess,) of price trends.

In addition, with the overwhelming response of global central banks over the last 8 years to keep rates low (or negative) investors have taken increased risk to reach for return, especially yield as witnessed in the dazzling positive performance of telecom and utility stocks. Thus, stock prices for dividend stocks and stocks in general, are now extended from underlying businesses fundamentals.

For now, price discovery is overwhelmed by monetary policy response and momentum trades rule the day. In essence, price is built on story and story is fiction (at least in my opinion).

Sooner or later, this overvalued condition painfully corrects which makes my reading suggestions for you more important than a list of quixotic words and adages of old.